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E-money provider International Payment Union is the latest institution to be censured by the Bank of Lithuania following scrutiny of its compliance processes.
The Bank of Lithuania announced a regulatory breach by the firm, which operates Interpaylink.com, following an unscheduled inspection.
International Payment Union, which has been authorised since July 2018, failed to promptly notify the central bank of multiple crucial changes in its operational data.
The inspection revealed that it did not inform the central bank about amendments to its articles of association, the transfer of shares in its authorised capital, changes in voting rights and the termination of board members' duties.
These omissions constitute a significant lapse in adhering to regulatory requirements, the central bank said.
As a result of these findings, the Bank of Lithuania has opted for a public disclosure of the violation committed by International Payment Union, stopping short of a financial penalty.
Furthermore, it gave the institution a deadline of September 30, 2024 to enhance its internal controls to ensure timely and accurate reporting of necessary information to the regulatory body in the future.
The regulator emphasised the importance of compliance among licensed financial institutions in its bulletin, stating that timely provision of updated information is critical for assessing whether such institutions continue to meet licensing requirements.
It warned that non-compliance could lead to severe consequences, which has happened to three other firms in the past month.
Phoenix Payments, KogoPay and Maneuver LT all faced punitive penalties last week after the Bank of Lithuania decided to fine them for non-compliance with rules on matters such as anti-money laundering and safeguarding.
Phoenix Payments received the biggest penalty, a fine of €970,000 and must eliminate the remaining violations and deficiencies by July 31.
