Bank of Lithuania
2019-11-28
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AB SEB bankas failed to properly provide information to two market participants
The Bank of Lithuania received a complaint from a financial market participant, stating that it, without any proper notice, was charged with a monthly deposit management fee of €500 by AB SEB bankas. The investigation has shown that AB SEB bankas imposed this fee on two of its business clients who had to be informed directly, yet the bank failed to fulfil this duty. However, AB SEB bankas has already exempted all its clients from the mentioned tax.

Given the minor nature of the violation, the fact that the bank has indemnified the damage (€2,500) caused to one of the companies and took action to prevent similar violations in the future, the Board of the Bank of Lithuania decided to make this infringement public and ordered AB SEB bankas to refund the charged amount (€3,500) to the other client as well. AB SEB bankas has immediately reimbursed the identified amount.

New electronic money institution licence issued
The Board of the Bank of Lithuania issued an electronic money institution licence to Guru Pay, authorising it to issue electronic money and provide certain payment services set forth in the Republic of Lithuania Law on Payments. As part of its expansion plan, the company intends to develop its business in Lithuania and then spread it to other countries of the European Economic Area.

Having secured the licence, the company is obliged to provide the Bank of Lithuania with evidence of proper implementation of measures for safeguarding customer funds before it starts providing the mentioned financial services – such step was taken due to the fact that proper safeguarding of customer funds is one of the cornerstones in ensuring reliable and stable operation of electronic money and payment institutions.

As a preventive measure, the Bank of Lithuania intends to apply this practice to other newly licensed electronic money and payment institutions which, during the authorisation process, will not have provided evidence of effective safeguarding of customer funds.

This preventive measure will help to better protect the rights and interests of customers of electronic money and payment institutions, as the licensed institutions will be allowed to start their activities only after the Bank of Lithuania is provided with evidence that they can ensure effective and proper safeguarding of their customer funds.

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Information on enforcement measures applied by the Bank of Lithuania, complaints regarding the applied enforcement measures, and settlement results is available here.