Financial Crime World

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Lithuania Takes a Bold Step in AML Compliance with Center of Excellence

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In a significant move to strengthen its anti-money laundering (AML) regime, Lithuania’s government has approved the establishment of the Center of Excellence in Anti-Money Laundering. This unique public-private cooperation project aims at preventing money laundering and combating terrorist financing.

Why is AML Compliance Important?

As outlined by the Financial Action Task Force (FATF), Lithuania’s geographical location on the Russian border makes it vulnerable to money laundering and other financial crimes, with value-added-tax (VAT) fraud being one of the largest sources of illegal income. The country needs a robust AML framework to prevent these crimes and protect its financial system.

What is the Center of Excellence?

The Center of Excellence will be a hub for collaboration between public and private sector entities, including:

  • Bank of Lithuania
  • Ministry of Finance
  • Commercial banks

The initiative aims to strengthen Lithuania’s AML framework by:

  • Sharing information on money laundering and terrorist financing risks
  • Conducting evaluations and analyses
  • Providing training and guidance to public and private sector personnel

Quotes from Industry Experts

“Lithuania is committed to combating AML and protecting its financial system,” said Jekaterina Govinda, Director of the Bank of Lithuania Audit Service.

“With our advanced AML solutions, Lithuanian financial institutions can efficiently detect high-risk and suspicious activities, comply with local and global AML obligations, and protect their businesses from crime risks and legal penalties,” said a spokesperson for Sanction Scanner.

How Does it Impact Businesses?

Lithuania’s AML regulations apply to various industries, including:

  • Exchange offices
  • Investment companies
  • Accountants
  • E-money trading companies
  • Banks
  • Tax advisors
  • Crowdfunding platforms

Non-compliance with these regulations can result in penal sanctions. It is essential for businesses operating in Lithuania to understand and comply with AML regulations to avoid legal penalties.

Institutions Responsible for Preventing Money Laundering and Combating Terrorist Financing

The institutions responsible for preventing money laundering and combating terrorist financing in Lithuania include:

  • Government of the Republic of Lithuania
  • State Security Agency
  • Lithuanian Financial Crimes Investigation Service
  • Bank of Lithuania
  • Customs Office
  • Ministry of Culture
  • Others