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+1 (888) 647 05 40In Lithuania, a PSP permission is required to operate a remittance service biz. The PSP permission is issued by the Bank of Lithuania, which is the country’s central bank and monetary regulator. The permission is needed for businesses that supply payment favors such as remittance processing, remittance initiation, and money transmissions.
Lithuania has created a favorable environment for FinTech companies, with a supportive regulatory framework, a talented workforce, and a well-developed IT infrastructure.
One of the reasons why the country has become an attractive destination for FinTech firms is due to its EU membership. The country has implemented EU directives related to remittance favors, e-money, and anti-money laundering, which has provided certainty for FinTech firms operating in Lithuania.
The Bank of Lithuania, the country’s central bank, has also created a regulatory sandbox, which allows FinTech business-companies to test their innovative products and favors in a controlled environment. This has helped to foster innovation and has provided an opportunity for FinTech companies to develop and refine their offerings before launching them to the market.
To acquire a PSP permit in Lithuania, the next steps must be taken:
Once a PSP license has been granted, the firm must continue to comply with the regulatory demands set out in the Law on Payments, Electronic Money and Payment Institutions. This includes regular reporting to the Bank of Lithuania, compliance with anti-money laundering and counter-terrorism financing adjustments, and maintaining adequate systems and controls to manage risk.
Failure to comply with the regulatory demands can result in fines, penalties, or the revocation of the PSP permission. It is therefore important for remittance service providers to ensure that they are fully compliant with all regulatory requirements at all times.
The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.