Bank of Lithuania
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Analysis and research

Analysis and research

Analysis and research series papers present the analysis and research of the data collected and systematised by the Bank of Lithuania experts.

No 5

Overview of the ongoing monitoring of customers' business relationships and transactions

  • Abstract

    The Bank of Lithuania, in the course of its risk-based supervision, observes that FMPs face issues related to the practical implementation of monitoring. This document provides a brief overview of the purpose of the organisation and implementation of monitoring, the identification and interoperability of the monitoring model/framework and solutions, the adaptation of individual monitoring solutions, including monitoring scenarios, to the FMP’s business model and the existing customer portfolio, as well as the periodic review and testing of the monitoring solutions, including automated scenarios. This review also aims to provide a brief overview of possible monitoring solutions in cases of increased ML/TF risks, best practices in the review of alerts generated by the automated monitoring system and in the process of conducting more in-depth internal investigations, as well as practical examples of internal investigations that have been carried out inappropriately.

    The overview is based on the provisions of the legislation of the Republic of Lithuania, best practices of international organisations and other supervisory authorities, as well as best practices of financial institutions observed by the Bank of Lithuania in the exercise of its supervisory functions.

No 4

Implementation of international sanctions in financial institutions

  • Abstract

    In carrying out, within its competence, risk-based supervision of FMPs, the Bank of Lithuania notes that FMPs do not always pay appropriate attention to the implementation of international sanctions and restrictive measures and that FMPs face difficulties in the implementation of international sanctions and restrictive measures in practice. In this Review of the Implementation of International Sanctions in Financial Institutions (hereinafter – the Review), the Bank of Lithuania provides key insights into the measures taken by FMPs to implement international sanctions and restrictive measures.

    The Review is based on the provisions of legal acts and good practices of the EU and the Republic of Lithuania, Analysis of the International Sanctions Screening Systems conducted by the Bank of Lithuania over 20 FMPs (banks, electronic money institutions, payment institutions) in December 2021–May 2022 (hereinafter – the Analysis), contains examples of good practice identified during the Analysis and cases where the measures applied to implement international sanctions need to be improved.

No 3

Capital market development action plan

  • Abstract

    With a view to promoting a stable and competitive development of the Lithuanian capital market, attracting new investors and increasing the activity of existing investors, promoting and facilitating  the use of existing financial market instruments by the country's economic entities and their access to the financing instruments used in other countries, the Bank of Lithuania has drawn up a plan of measures for the development of the capital market that took into account  not only the proposals and problems identified by market players and investors, but also those identified by the Bank of Lithuania, and  its proposals as to how such issues could be addressed.

No 2

On the application of de-risking policy and the potential impact on financial exclusion

  • Abstract

    The analysis presents the results of a desk review carried out by the Bank of Lithuania, the aim of which was to assess whether the application of stricter anti-money laundering and counter-terrorism financing (AML/CTF) measures and de-risking policy by the payment service providers supervised by the Bank of Lithuania reduce the accessibility of payment services for various legitimate groups of users. 

    The views expressed are those of the author(s) and do not necessarily represent those of the Bank of Lithuania.