17-05-2023
FCIS money laundering prevention: reports of suspicious transactions have doubled, inspections continue
The latest data from the Financial Crimes Investigation Service (FCIS) show that the number of reports of suspicious monetary transactions has more than doubled in 2022 compared to 2021. The total number of reports received in 2022 amounts to almost 100,000.
The largest number of such reports - over 93,000 - was received by the FCIS from payment and electronic money institutions, accounting for almost 94% of all reports received in 2022. Compared to the year 2021, the number of reports submitted by payment and electronic money institutions has jumped more than 2 times.
The sector of virtual currency operators has become more active. It ranks second in terms of the number of reports filed, with more than 4,000 reports submitted to the FCIS. Compared to the year 2021, this figure has increased the most - almost 83 times.
The number of reports received from the banking sector almost doubled in 2022 to 1,633, compared to 935 reports submitted in 2021.
"Suspicious transaction reports (STRs) have been on an upward trend for several years in a row. This is also influenced by the continued development of the financial sector, the establishment of new electronic money and payment institutions or virtual currency operators in Lithuania. However, we observe that market participants are becoming more aware of the risks of money laundering. The growing number of reports shows that regulated entities are becoming more aware of suspicious activity and are informing the FCIS about it," notes Rolandas Kiškis, the Director of the FCIS.
Suspended funds on the rise
In 2022, financial institutions reported twice as many times to the FCIS that they had suspended customers' money transactions. 565 such reports were submitted last year while in 2021 the number of reports was 253.
The total amount of suspended monetary transactions is estimated to have increased 3-fold compared to 2021, with more than €162 million suspended in 2022, compared to over €65 million in 2021. This increase in suspensions is attributed to an increase in the number of regulated entities and the number of cases of fraud and other criminal offences.
The Money Laundering Prevention Board (MLPB) of the FCIS also received 253 requests from other divisions of the FCIS, the Lithuanian Police and foreign Financial Intelligence Units to suspend funds in financial institutions, in 2021 there were 203 requests of such type.
In 2022, the FCIS divisions launched 11 pre-trial investigations based on reports of suspicious financial activities of natural and legal persons.
Inspections continue
The MLPB carried out 30 inspections in 2022, covering 16 virtual currency operators, 7 company incorporation service providers and 7 companies involved in asset trading.
The inspections were planned following the results of a strategic analysis of the virtual currency operators’ sector. In addition, as part of the supervision of other regulated entities, inspections were carried out on companies involved in asset trading where cash settlements are made in an amount equal to or greater than €10,000.
The inspections identified violations of the Anti-Money Laundering and Counter Financing of Terrorism Act (AML/CFTA) in 25 companies, with 2 inspections still ongoing. The material collected during the inspections has been forwarded to the AML/CFTA Commission for the examination of infringements.
The above-mentioned Commission assessed the infringements committed by 22 companies. Fines ranging from €2,700 to more than €110,000 have been imposed on 18 companies, warnings have been issued to 3 companies and 1 company has had its infringement proceedings terminated. The total amount of fines imposed by the Commission is more than €245,000. In 2021, the total amount of fines imposed by the Commission amounted to over €212 thousand.
During 2023, 24 companies operating in the virtual currency services and cash settlement sectors are to be inspected. The list of planned inspections is published on the FCIS website.
Last updated: 17-05-2023
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