Financial Crime World

Here is the rewritten article in markdown format:

Lithuania Makes Progress in Fighting Money Laundering and Terrorist Financing, Says MONEYVAL Report

A new follow-up report by MONEYVAL has revealed that Lithuania has improved its measures to combat money laundering and terrorist financing, demonstrating significant progress in compliance with Financial Action Task Force (FATF) standards.

Improved Compliance

According to the report, Lithuania’s level of compliance with FATF recommendations has increased, with the country now considered “largely compliant” instead of “partially compliant”. The assessment was conducted as part of an enhanced follow-up procedure, which reviewed Lithuania’s implementation of targeted financial sanctions related to terrorism and terrorist financing, its risk-based approach towards supervising financial institutions and designated non-financial businesses and professions, and legislation on cross-border transportation of cash and bearer instruments.

Areas of Improvement

MONEYVAL praised Lithuania for adopting a new anti-money laundering and counter-terrorism financing supervision policy for financial institutions and related risk assessment methodology, which has improved its regulation and supervision of financial institutions. The country has also achieved full compliance with eight out of the 40 FATF recommendations constituting international anti-money laundering and countering the financing of terrorism standards.

However, more efforts are still needed to address minor deficiencies in implementing 25 recommendations, where Lithuania is considered “largely compliant”, and significant deficiencies remain in seven recommendations, which are rated as “partially compliant”. Lithuania has no non-compliant ratings.

Looking Ahead

The report notes that due to MONEYVAL procedural limitations, it does not assess the effectiveness of these reforms in practice. Instead, it focuses on formal changes in the legislative, regulatory, and institutional framework. Lithuania is expected to report back to MONEYVAL on its progress in strengthening implementation of anti-money laundering and countering the financing of terrorism measures in two years.

Access the Full Report

The full report can be accessed online.

Key Takeaways

  • Lithuania has made significant progress in combating money laundering and terrorist financing.
  • The country is now considered “largely compliant” with FATF standards, up from “partially compliant”.
  • Lithuania still needs to address minor deficiencies in implementing 25 recommendations and significant deficiencies in seven recommendations.
  • The report does not assess the effectiveness of these reforms in practice, but rather focuses on formal changes in the legislative, regulatory, and institutional framework.