Bank of Lithuania revokes licence of Wirecard scandal FinTech

Lithuania’s central bank has revoked the licence of UAB Finolita Union, which is suspected to have stolen over €100 million from Wirecard weeks before the company collapsed.

The move comes nearly a month after EU lawmakers urged Lithuania to tighten its financial oversight after it was revealed that the Vilnius-based FinTech was involved in the scandal.

The Bank of Lithuania said that having completed an investigation started in autumn, it had revoked the company’s license for “severe infringements of anti-money laundering and counter-terrorist financing requirements.”

In June 2020, the German financial market supervisory authority acknowledged that Wirecard was facing problems in its operations.

The central bank said that having swiftly identified connections of UAB Finolita Unio with the
Wirecard companies, it immediately initiated enhanced supervision of the company’s operations.

After performing the analysis, in autumn 2020, it started an ad-hoc investigation of the institution’s activities.

In order to temporarily distance the company from the influence of Senjo Group Pte. Ltd., its main shareholder, the majority of the voting rights in the company were transferred to an independent company Valnetas.

“The investigation conducted by the Bank of Lithuania revealed that UAB Finolita Unio treated anti-money laundering and counter-terrorist financing requirements in a very careless and irresponsible manner and made many severe infringements in this field,” said the bank in a statement.

It added that the FinTech failed to assess money laundering and terrorist financing risks of its customers, acted with negligence when establishing and checking identity of its customers and beneficial owners, failed to identify the nature of activities of legal entities, improperly monitored business relationships and operations of customers, and failed to comply with the requirements related to the implementation of international financial sanctions and enforcement measures.

According to the bank, the company also inadequately monitored the operations performed by the persons related to the company and did not analyse the grounds and objectives of large transactions made by these persons.

    Share Story:

Recent Stories

The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.

The Rise of Instant Payments
Instant payments are creating new business opportunities for banks by providing more touchpoints than ever. With these evolutions underway, Featurespace brought leading industry experts together to discuss how they are protecting customers from fraudsters in real time, utilizing innovative and disruptive solutions to reduce fraud. Click here to find out more.

Offloading Cyber Risk in the Cloud
As cyber attacks and data breaches are in the news on an increasingly regular basis - with regulatory penalties and customer trust on the line for financial services firms - it has never been more crucial to be compliant in the cloud.

This video, with Akamai’s EMEA director of security technology and strategy Richard Meeus, will help explain what your company can be doing to make sure it’s not embroiled in the next big fine or front-page scandal.