UAB deVere E-Money fined for improper segregation of customer funds
The Supervision Service of the Bank of Lithuania has concluded that the electronic money institution UAB deVere E-Money breached the requirements set out by the Republic of Lithuania Law on Electronic Money and Electronic Money Institutions by holding customer funds outside credit institutions and imposed it a fine.
Pursuant to legal acts, the electronic money institution, having decided to apply the method of segregation and protection of customer funds, was obliged to hold them with credit institutions established in Lithuania or other EU countries. UAB deVere E Money breached this requirement by not holding the bulk of its customer funds with credit institutions. Therefore, the Bank of Lithuania imposed a €21,600 fine on the institution and obliged it to remedy the identified deficiencies related to the protection of customer funds by 1 October 2019.
Moreover, the Supervision Service has identified that the institution provided the Bank of Lithuania with incorrect information on the balance of its customer funds held with credit institutions as at the end of the third and fourth quarters of 2018 and the first quarter of 2019. Taking into account all the circumstances of the infringement, the Bank of Lithuania issued a warning to UAB deVere E-Money and obliged it to submit correct balance sheets by the third quarter of 2019.
Information on enforcement measures applied by the Bank of Lithuania, complaints regarding the applied enforcement measures, and settlement results is available here.