The Bank of Lithuania set out its programme to strengthen the competitiveness of Lithuania’s financial market by harmonising national regulation with leading European Union practices, applying risk-based and proportionate supervision, and removing excessive domestic supervisory requirements. Key measures cited include amendments, drafted with other institutions and market participants, to the Law on the Prevention of Money Laundering and Terrorist Financing that entered into force in July 2025. These changes broaden the use of simplified customer due diligence and give firms more flexibility to calibrate anti-money laundering and counter-terrorist financing measures in lower-risk cases, with particular relevance for fintechs, life insurance companies and pension accumulation companies, and they simplify the use of document validation certificates and access to reliable independent databases or registers. The Bank of Lithuania’s board also updated its approach to applying optional exemptions under EU banking rules, allowing stricter requirements for higher-risk credit institutions and relaxations in lower-risk areas, and revised its authorisation regulations so applicants no longer need to provide legalised or Apostille-certified foreign documents in every case, while moving licensing submissions fully to the administrative and public e-services portal and simplifying certification of copies. Further follow-up based on earlier industry feedback includes an extended reporting deadline for credit unions, government consideration of proposals to waive a spouse’s power of attorney in sales of financial instruments, a review of processes for implementing European supervisory authorities’ guidelines and issuing letters of expectation, an inspection process under review, and ongoing discussions on revising rules for collective investment undertakings for informed investors and additional licensing simplifications.
Bank of Lithuania 2025-09-09
Bank of Lithuania streamlines AML customer due diligence and licensing rules to reduce administrative burden
The Bank of Lithuania launched a programme to boost financial market competitiveness by aligning national regulations with EU standards, implementing risk-based supervision, and reducing excessive domestic requirements. Key changes include amending the Law on the Prevention of Money Laundering and Terrorist Financing for more flexible due diligence for fintechs and other sectors, and updating EU banking rule exemptions. The bank also streamlined licensing processes and is reviewing regulatory processes based on industry feedback.