TITLE: Lithuania's Central Bank Revokes E-Money Institution License for Compliance Failures
BODY:
On March 4, 2026, the Bank of Lithuania (Lietuvos bankas) revoked the license of UAB "PAYTEND EUROPE," an e-money institution, following a supervisory inspection that identified serious and systematic violations across multiple compliance areas.
The inspection revealed significant deficiencies in customer due diligence and transaction monitoring, anti-money laundering and counter-terrorism financing (AML/CTF) risk management, and internal control systems. The institution failed to implement effective control measures proportionate to its operations and risk profile. Specifically, the Bank of Lithuania found that PAYTEND EUROPE's customer due diligence procedures were insufficient to identify suspicious customer activity. Systematic gaps were identified throughout the monitoring process, from internal control procedures to staff accountability and practical implementation of monitoring measures. This resulted in suspicious activity alerts not being analysed timely or appropriately, and internal investigations being conducted formally or incompletely. Additionally, the institution failed to file suspicious transaction reports to the Financial Crimes Investigation Service despite having grounds to do so.
The inspection also identified significant AML/CTF prevention deficiencies, including the absence of effective internal control procedures, unclear functional segregation, and inadequate resource allocation to this area. The institution failed to properly manage conflicts of interest, with control functions not adequately separated from business interests. PAYTEND EUROPE also provided incorrect information to the Bank of Lithuania regarding high-risk customer relationships and failed to preserve and submit relevant correspondence. The institution also failed to submit audited 2024 annual financial statements and other mandatory supervisory reports within required timeframes.
As of March 4, 2026, PAYTEND EUROPE is prohibited from providing any financial services. The institution must inform customers of repayment procedures within five business days. Customers seeking return of funds held in accounts must contact the institution directly, with funds to be transferred to accounts at other financial institutions as designated by customers.
REFERENCES:
Bank of Lithuania: https://www.lb.lt/