“The scope of the inspections was determined in view of the developments and trends in the financial market as well as areas where we see the greatest potential for risks and errors. We will focus mainly on money laundering prevention, seeking to further strengthen the resilience of the financial system as well as reduce money laundering risks and the adverse impact that they may have on the country’s reputation and economy," said Jekaterina Govina, Director of the Financial Market Supervision Service of the Bank of Lithuania.
The Financial Market Supervision Service plans to inspect 18 electronic money institutions, 6 banks, 2 credit unions, 2 issuers, 2 crowdfunding platform operators, 2 insurance undertakings, 2 management companies, and 1 consumer credit provider.
The inspections will largely focus on risk management, compliance with internal control requirements and anti-money laundering/counter-terrorist financing regulations, as well as quality assurance.
In addition to targeted inspections, investigations and document analysis, representatives of the Financial Market Supervision Service will also conduct on-site visits to collect information and provide consultations and methodological assistance.
In addition to routine inspections, the Bank of Lithuania also carries out unannounced inspections in response to complaints, changes in market participants’ operations or relevant risks. Inspections of banks directly supervised by the European Central Bank might be also carried out (in cooperation with experts from the European Central Bank).
Plans for routine inspections have been published by the Bank of Lithuania since 2017 to ensure smoother and more constructive cooperation between the supervisory authority and market participants. Announcing inspections in advance also serves as a preventive measure: financial institutions act quicker in assessing potential operational shortcomings and eliminating them. This results in a much faster and more efficient inspection process.
