Important changes in legislation and first homework for Fintech companies in 2021

Fintech companies holding e-money or payment institution licences are reminded to:

1. Assess whether the company’s governance arrangements are in line with the Description* and amend a governance system, if needed.
2. Update internal control procedures in relation to safeguarding customers’ funds according to requirements set out in the Description.
3. Assess whether contractual arrangements with banks on the safeguarding of the customers’ funds contain all mandatory provisions specified in the Description.
4. Conduct an annual audit to assess the efficiency of the internal control system elements for the prevention of ML/TF as required by the Guidelines **.
5. Update the process of outsourcing of the operational functions according to the Rules***.
6. Review and amend contracts on the outsourcing of the operational functions according to the requirements stipulated in the Rules.

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* Resolution of the Bank of Lithuania Board No 03-106 dated 23 July 2020 on approval of Description of Requirements for Electronic Money and Payment Institutions regarding the Governance Arrangements and Safeguarding of Received Funds
** Resolution of the Bank of Lithuania Board No 03-15 dated 30 January 2020 on approval of Guidelines on the Prevention of Money Laundering and/or Terrorist Financing for Financial Market Participants
*** Resolution of the Bank of Lithuania Board No 03-166 dated 10 November 2020 on approval of the Rules on the Outsourcing Operational Functions of the Financial Market Participants