Resolutions of the Board of the Bank of Lithuania
Paysera LT obligated to replace head of the administration; Electronic money institution licences issued to GlobalNetint, UAB and UAB PanPay Europe; Payment institution licence issued to Majestic Financial, UAB.
Paysera LT obligated to replace head of the administration
After assessing the results of the inspection of the electronic money institution Paysera LT, UAB, the Board of the Bank of Lithuania decided to remove Kostas Noreika, the company’s head of the administration, from office.
The decision followed identification during the inspection of infringements of legislation and deficiencies in the company’s operation basically related to the protection of funds of electronic money holders. According to legislation, this institution had to hold customer funds with credit institutions of the Republic of Lithuania or other Member States; however, this requirement had not been fully implemented.
In addition, deficiencies in recording the company’s financial data in its balance sheet and profit (loss) statements were identified during the inspection. Inspectors also found other shortcomings related to the efficiency of internal control procedures and risk management.
Paysera LT eliminated part of the deficiencies already during the inspection. It also took action for the protection of funds to fully meet the requirements. According to the last data submitted by this electronic money institution, all funds of the clients are held with credit institutions and have been invested in safe and liquid assets as laid down in legal acts. Based on the financial reporting data submitted, the company meets the capital requirements with a margin.
Within 20 days of the receipt of the Board’s decision, Paysera LT will have to submit a plan for the elimination of the infringements of legislation and deficiencies in its operation identified during the inspection and to remedy the situation by 31 March 2018.
Once the company appoints a new head of the administration, his/her responsibility will be to duly ensure the company’s business continuity and guarantee the protection of funds received from electronic money spent as provided for in legislation.
Electronic money institution licences issued to GlobalNetint, UAB and UAB PanPay Europe
The Board of the Bank of Lithuania has granted electronic money institution licences to GlobalNetint, UAB and UAB PanPay Europe, authorising them to issue electronic money and provide certain payment services established in the Republic of Lithuania Law on Payments.
GlobalNetint, UAB is allowed to provide payment services laid down in points 1, 2, 5 and 6 of Article 5 of the Republic of Lithuania Law on Payments: services enabling cash to be placed on a payment account as well as all the operations required for operating a payment account; services enabling cash withdrawals from a payment account as well as all the operations required for operating a payment account; issuing and/or acquiring of payment instruments; and money transfers.
The licence issued to UAB PanPay Europe, in addition to the abovementioned services, also grants the right to provide a service indicated in point 3 of Article 5 of the Republic of Lithuania Law on Payments – execution of payment transactions, including transfers of funds on a payment account with the payment service provider of the payment service user or with another payment service provider.
Payment institution licence issued to Majestic Financial, UAB
The Board of the Bank of Lithuania has issued a payment institution licence to Majestic Financial, UAB, granting the right to provide payment services established in points 1, 2, 3, 5 and 6 of Article 5 of the Republic of Lithuania Law on Payments. Having received the payment institution licence, the company plans to offer a range of FinTech-based payment services essentially oriented towards e-business.