2018-04-20
The risk of cross-border money laundering in Lithuania – among the lowest in the European Union
With the international community strengthening its efforts to fight cross-border money laundering and terrorist financing, Vitas Vasiliauskas, Chairman of the Board of the Bank of Lithuania, who is on a visit in Washington, D.C., will share Lithuania’s best practices in this field with representatives of the U.S. Department of the Treasury.
‘Having taken timely action to ensure the health and transparency of the country’s financial system, today we have a banking sector that operates in a stable and effective manner. The risk of cross-border money laundering through our country’s financial system is not only the lowest in the Baltic region but also one of the lowest in the European Union. Nevertheless, we cannot underestimate the potential threats. Therefore, we devote continued attention to supervising financial market participants and cooperating with law enforcement authorities,’ said Vitas Vasiliauskas, Chairman of the Board of the Bank of Lithuania. According to him, while the Baltic financial markets are often seen as a single region, in some important regards Lithuania’s banking sector’s structure is fundamentally different from those of the neighbouring countries.
Non-resident deposits in Lithuania account for just 2.5% of total deposits – which is one of the lowest indicators across the EU. Loans to non-residents in Lithuania constitute an even smaller share – merely 1.8% of all loans extended. This is also one of the lowest indicators among the EU countries.
Three days ago the European Commission has put forward suggestions for strengthening the European anti-money laundering framework. At a meeting in March this year in Buenos Aires (Argentina), Finance Ministers and central bank governors of the G20 countries expressed commitment to step up efforts to curb cross-border money laundering activities. United Nations data indicates that the annual scale of money laundering globally ranges between USD 800 billion and USD 2 trillion (2–5% of global GDP).
While the risk of money laundering and terrorist financing in our country is relatively low, this issue still requires permanent attention and scrutiny due to ever-increasing financial interconnectedness and technological innovations in the financial sector. The Bank of Lithuania monitors and advises financial market participants, provides them with the necessary training and closely assesses potential new market entrants.
During his visit in the U.S., Mr Vasiliauskas will also attend the International Monetary Fund and World Bank Spring Meetings.