The FMA warns about the e-money institution UAB Neocard, whose licence to conduct financial services was revoked by the Bank of Lithuania due to multiple, systematic and long-lasting gross violations of legal acts.
The violations included failure to ensure effective internal control of the prevention of money laundering and terrorist financing, improper management of conflicts and interest (e.g. some of the institution’s customers were identified as being related to the institution’s shareholders), no establishment of adequate internal control procedures related to customer and beneficiary identification and verification, and significant shortcomings of internal policy and internal control procedures related to the implementation of international sanctions and restrictive measures.
In addition, it was established that the institution obstructed the Bank of Lithuania from conducting the inspection by providing fraudulently adjusted documents selected for inspection related to the identification of customers. Furthermore, UAB Neocard provided incorrect information to the Bank of Lithuania about the value of the payment services performed in 2023.
Because of the repeated violations, the Bank of Lithuania decided that the e-money institution is unable to carry out the activities covered by the licence and consequently revoked the licence.
Further information is available on the website of the Bank of Lithuania: https://www.lb.lt/lt/naujienos/lietuvos-banko-valdybos-nutarimai-228