Lithuania’s central bank has imposed a hefty fine of 3.5 million euros (approximately $3.83 million) on a British fintech company due to shortcomings in its money-laundering prevention measures. This penalty emerged from a routine examination that revealed concerns over the company’s monitoring of its business relationships and internal operations. Consequently, it failed to effectively identify potentially suspicious transactions, as outlined by the central bank’s statement.
The fined fintech entity asserted that the investigation did not uncover any instances of actual money laundering, highlighting that the findings primarily related to the enhancement of existing controls within the company. The firm reiterated its commitment to compliance with regulatory standards and emphasized its cooperation with the Lithuanian central bank to rectify the identified issues.
This penalty stands as the largest ever levied by the Lithuanian central bank, signaling the seriousness of the violations in question and considering the financial performance of the company’s operations in the European Economic Area. The fintech company reached a valuation of $45 billion in August and reported a remarkable pretax profit of 438 million pounds (around $559.5 million) for the year 2023.
In related industry developments, the fintech has also partnered with Visa to challenge the UK Payment Systems Regulator (PSR) over proposed ceilings on interchange fees. Both entities argue that imposing such limits would adversely affect competition and stifle innovation in the fintech landscape. They contend that the regulator’s decision is excessive and could have detrimental repercussions for consumers and businesses alike.
The fintech company maintains that the PSR’s proposed changes could compel banks to reduce rewards programs or introduce additional fees to offset losses, ultimately resulting in negative outcomes for consumers. Additionally, Visa has cautioned that restricting interchange fee revenues could hinder competition and impede growth within the fintech sector.