Recent News

Lithuania's fintech sector defied the global investment downturn in 2022, recording an 80% increase in revenue. Source:https://www.finextra.com/newsarticle/41902/lithuanian-fintech-sector-defies-global-downturn The country, which has nurtured a position as a fintech hub, scored an 80% increase in the income generated from all licensed Lithuanian fintechs’ banking activities in H1 2022 over the same period in 2021, reaching €375 million. This was up 26 times on the first half of 2018, with the top ten highest-growth fintechs posting increases in revenue of more than 100%. The report reveals that 263 fintech companies are now domiciled in Lithuania employing 7 000 people - a 19% increase over 2021. Lithuanian regulators have taken a proactive approach to making the country the largest fintech hub in the EU by licences issued. The government is set to continue its push, with the Ministry of Finance finalising its “National Fintech Guidelines for 2023-2028”, which will set the strategic direction for the sector’s growth for the next five years. The government has also dedicated €80 million for an extensive three-year national upskilling and reskilling programme,...

At the end of 2022, Law No. 2571-IX entered into force, which amended the legislation on the submission of information on the final beneficial owners (BPOs) of legal entities. Interestingly, there is an opportunity to submit information about the UBO and the ownership structure in electronic form, and about the main changes below: 1. Changes in the terms of submission of information about UBO The law stipulates that the Ministry of Finance will develop a Methodology for determining the UBO of a legal entity and, accordingly, legal entities will be obliged to disclose or submit corrected information about the beneficiary within six months from the date of approval of the Methodology, but not earlier than three months (90 days) from the date termination of martial law in Ukraine. 2. The requirement for annual reporting on the UBO has been cancelled The law retained the obligation to maintain up-to-date information on the UBO and the ownership structure of a legal entity, but canceled the requirement to annually submit information on the beneficiary and the ownership structure. Therefore, the message will need to be sent in the following cases: within 30 working days from...

On Friday, February 24, Financial Action Task Force (FATF) suspended Russia's membership, saying that Russia's war in Ukraine violates the organization's principles. Source:https://www.reuters.com/world/europe/financial-crime-watchdog-fatf-suspends-russias-membership-over-ukraine-war-2023-02-24/ FATF is an inter-governmental organisation set up to combat money laundering and terrorism financing by setting global standards and checking if countries respect them. "This is the first time a member of FATF is suspended," FATF President Raja Kumar told a news conference. "Russia is effectively sidelined from the organisation." FATF strongly condemns the aggressive war of the Russian Federation against Ukraine and recognizes the UN General Assembly Resolution ES-11/1, which requires the Russian Federation to immediately, completely and unconditionally withdraw all its military forces from the territory of Ukraine within its internationally recognized borders. The actions of the Russian Federation are unacceptably inconsistent with the FATF's core principles aimed at promoting the safety and integrity of the global financial system. They are a gross violation of the obligations of...

The Swiss bank Credit Suisse, Switzerland’s second-largest bank, has blocked Russian assets worth more than 19 billion dollars (17.6 billion Swiss francs), which is a third of all declared Russian assets in Switzerland. Source:https://www.tagesanzeiger.ch/17-6-milliarden-franken-russen-gelder-793972606992?idp=OneLog&new_user=yes Of the amount blocked by the bank, only 4.32 billion belong to persons previously included in the sanctions list by the Swiss authorities. The remaining 14.7 billion dollars concern persons who have been sanctioned in other countries. In addition, Credit Suisse froze the funds of the Russian Central Bank. It is noted that earlier the State Secretariat of the Economy of Switzerland announced the blocking of Russian assets in the amount of 8.1 billion dollars and 15 real estate objects. The blocking of Russian assets took place within the framework of sanctions imposed on the Russian Federation due to a full-scale invasion of...

Israel’s Banking Supervision Department has fined three banks in the country for violating the norms of debt collection from customers. Source:https://www.retailbankerinternational.com/news/israel-supervisor-fines-three-banks/ Israel Discount Bank, Bank Hapoalim, and Mizrahi-Tefahot Bank are facing fines of NIS1.2m, ($349,202.65), NIS850,000($247,351.88), and NIS700,000 ($203,701.55), respectively. The central bank imposed financial sanctions on all three banks for failing to report the monies received that were paid against the debt. As Israel Discount Bank failed to promptly notify the authorities of the debt restructuring agreements agreed upon between the bank and the customer, the bank was subject to an additional financial penalty. The banking regulator said that the banks had informed the receipts were recorded on their books and taken into account throughout the closing process and therefore no financial harm was caused to consumers. Supervisor of Banks Yair Avidan said: “The Banking Supervision Department sees importance in enhancing consumer enforcement and will continue to act to carry out controls with information received from the public. We see in this...

The Financial Conduct Authority (FCA) has appointed seven advisors to a new Innovation Advisory Group (IAG) which will meet for the first time this month. Source:https://www.finextra.com/newsarticle/41739/fca-sets-up-innovation-advisory-group/retail The group’s experience spans artificial intelligence and other emerging technologies, competition, digital markets, financial inclusion, and sustainability. It will help to support the FCA’s current plans and initiatives for 2023 and shape its innovation pathway to better serve businesses and consumers. The advisory group will consist of the following rotating members for a minimum one-year term: Pinar Akman, Professor of Law & Director at Jean Monnet Centre of Excellence on Digital Governance - University of Leeds Esra Kasapoglu, Director of AI and Data Economy - Innovate UK Etay Katz, Senior Partner, Financial Regulation - Ashurst LLP Massimo Preziuso, Lecturer in Sustainable Financial Technology - University of Salford Ghela Boskovich, Founder of FemTechGlobal & Head of Europe - Financial Data and Technology Association (FDATA) Alastair Reed, Principal Policy Adviser, Money - Which? ...

JPMorgan Chase & Co. is planning to launch a digital bank in Germany as its second international consumer outpost, a move that will create a launchpad for the biggest US bank to further expand in Europe. Source:https://www.bloomberg.com/news/articles/2023-02-01/jpmorgan-plots-germany-consumer-bank-in-next-international-foray The launch is slated for late next year or early 2025, and the firm expects to target other EU countries after that, according to people familiar with the plans. JPMorgan has been hiring in Berlin as part of the effort, and intends for the German capital to be its base for EU consumer operations, the people said, asking not to be identified as the plans aren’t public. New York-based JPMorgan made its first consumer foray beyond US borders in late 2021 with a digital-only retail bank in the UK offering checking (current) accounts. The bank plans to introduce credit cards on this platform already this year, and then personal loans, according to unofficial sources. Germany’s banking market is one of the most competitive in the world. The vast majority of the country’s hundreds of lenders are small and their unique ownership structure — many...