Lithuania faces pressure to ‘tighten FinTech rules’ after Wirecard scandal

EU lawmakers have urged Lithuania to tighten its financial oversight after it was revealed that a Vilnius-based FinTech was involved in the Wirecard scandal, according to The Financial Times (FT.)

UAB Finolita Unio is suspected to have stolen over €100 million from Wirecard weeks before the company collapsed.

Some of the money is believed to have been channelled to Wirecard’s ex-chief operating officer Jan Marsalek, who is currently on Interpol’s most-wanted list after fleeing before the company filed for insolvency.

Stasys Jakeliunas, MEP for the Lithuanian Farmers and Greens Union, told the newspaper that he hoped the case would be a “wake-up call” for Lithuanian authorities.

“It’s what to be expected,” he said to the FT. “FinTech needs agile supervision and regulation, and that is missing both at the central bank and not least the financial crime investigation service. They are not keeping up with these fast-moving, innovative businesses.”

Documents seen by the publication show that the Lithuanian FinTech appears to have processed some of the money that was siphoned off prior to the company’s collapse.

People familiar with the investigation told the FT that German prosecutors are currently looking into the matter and have been in touch with Lithuanian authorities.

They suspect that part of a €100m loan granted by Wirecard in March 2020 to a subsidiary of the FinTech’s owner, and processed by the Lithuanian company, was secretly passed on to Marsalek.

    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.