Resolutions of the Board of the Bank of Lithuania
The bank AS “SMP Bank” was instructed to remove shortcomings in the Lithuanian branch
The Board of the Bank of Lithuania was presented information about the results of the inspection of AS “SMP Bank” branch in Lithuania. The Board obligated the Latvian bank AS “SMP Bank” to correct the violation of a legal act concerning the prevention of money laundering and terrorist financing ascertained during the inspection of the Lithuanian branch by 30 November 2012 and to inform the Bank of Lithuania about it.
Correctness of the preparation of AS “SMP Bank” Lithuanian branch’s financial statements and reports for supervisory purposes submitted to the Supervision Service of the Bank of Lithuania, as well as ensuring compliance with the liquidity ratio and the requirements regarding the liquidity reserve and liquidity counterbalancing capacity were checked. Effectiveness of the internal control system was assessed. It was also verified how the branch ensures compliance with the legal acts regulating the prevention of money laundering and terrorist financing. During the inspection, a representative of the Financial Crime Investigation Service under the Ministry of the Interior participated together with the Bank of Lithuania experts. Under the request of the Financial and Capital Market Commission of the Republic of Latvia, the IT systems and their management and control tools installed at AS “SMP Bank” branch in Lithuania were analysed.
The Financial and Capital Market Commission of the Republic of Latvia, which is responsible for the supervision of this branch, and the Latvian bank AS “SMP Bank”, which established this branch, were informed about the main results of the inspection and certain areas of activity that raise concern of the Bank of Lithuania, whereas the Financial Crime Investigation Service was informed about the inspection results in the area of the prevention of money laundering and terrorist financing.
Supervision of branches established in the Republic of Lithuania by foreign banks licensed in the European Union (EU) Member States is conducted by the supervisory authority of the EU Member State under whose jurisdiction that foreign bank falls; however this does not limit the right of Lithuania’s supervisory authority to conduct their supervision in observance of the provisions of the EU directives and the legal acts of the Republic of Lithuania.
The Bank of Lithuania is responsible for the supervision of compliance with the liquidity ratio, monitors deposit concentration in these branches, analyses their financial indicators, changes in assets and liabilities, income and costs, internal control system. Under the request of a supervisory authority of a EU state, other information may also be checked.
Payment institution licence will be issued to UAB “Šilutės modemas”
The Board of the Bank of Lithuania decided to issue a payment institution licence to UAB “Šilutės modemas”, which grants the right to provide the payment service specified in Article 5(6) of the Republic of Lithuania Law on Payments (money remittances).
UAB “Šilutės modemas” provides services to the residents of Šilutė and Vilkaviškis towns and regions, who are recipients of pensions and other benefits.
According to the information provided by the company, it also engages in other economic activity – it provides funeral services.
Up to now, licences to provide payment services have been granted to 28 enterprises.
Financial advisor company licence of UAB “Synergy finance” cancelled
The Board of the Bank of Lithuania cancelled the financial advisor company licence issued to UAB “Synergy finance”. This licence was issued by the decision of 19 May 2011 made by the former Securities Commission, whose functions were taken over by the Bank of Lithuania.
UAB “Synergy finance” abandoned its financial advisor company licence, when this company’s management company recently received its operating licence, which grants the right to manage collective investment undertakings investing in other collective investment undertakings. The licence grants the right to engage also in additional activities: to manage financial instrument portfolios of other entities and consult on the issues of investment in financial instruments.