Higher rating for Lithuania in the risk assessment of money laundering and terrorist financing
After identification of the most vulnerable sectors and spheres, in which the greatest risk of money laundering and terrorist financing is possible, Lithuania was even higher evaluated as meeting the international standards, it is understood that Lithuania clearly understands the possible risks and threats. Such evaluation was given by the EU Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL).
The rating assigned by MONEYVAL was increased for Lithuania after the National money laundering and terrorist financing risk assessment.
“The National risk assessment have provided the solid foundations for the more efficient implementation of the prevention of money laundering and terrorist financing - paying more attention for the known high risk elements, strengthening risk reduction measures applied to them. Clear identification of the most vulnerable sectors and the possible scenarios of activity for financial institutions and other obliged subjects allows to create more efficient risk management procedures, encouraging more intelligent use of resources.”- says Mindaugas Petrauskas, Deputy Director of the Financial Crime Investigation Service.
The readiness of Lithuania to prevent money laundering and terrorist financing and compliance with the international standards were assessed last time in 2018. The assessment of MONEYVAL focused attention on the implementation process of recommendations formed during the previous assessment.
“The MONEYVAL assessment is the “thermometer” of the country’s resistance to the risks of money laundering and terrorist financing. It is important for foreign investors, evaluating the country’s reputation risk and other risks, foreign banks, deciding on the establishment of correspondent relationships with our banks as well as the other participants assessing the strength and resistance of Lithuania to different threats. Therefore it is obligatory to further proceed the started work, strengthening the system of money laundering prevention and to demonstrate to the world that we are the country, which understands the significance of money laundering prevention and has the skills to manage this risk”, - says Jekaterina Govina, Director of Supervision Office of the Bank of Lithuania.
After the assessment of the Lithuanian prevention of money laundering and terrorist financing performed in 2018, the plan of the country on implementation of MONEYVAL recommendation was approved, the consistent implementation of which would further strengthen the mechanisms of the prevention of money laundering and terrorist financing in Lithuania.
The implementation of the measures foreseen in the plan have already been started – the list of criteria for recognition of the possible money laundering and suspicious financial operations and transactions, apart from the others, it includes the criteria related to the proliferation of weapons of mass destruction. Aiming to review the priorities of the analysis and information dissemination, concentrating on the highest risk of money laundering, the analytical software and hardware have been purchased, which will perform the automatic assessment of the suspicious financial operations and transactions and determine the risks. Aiming to coordinate the steps of the other reporting institutions supervising subjects, ensuring the thorough attitude to the supervision based on risk, the guidelines have been prepared for the order, according to which the supervising institutions must take measures to manage the risk of money laundering and terrorist financing and perform the risk-based supervision of subjects.
With a view to further reinforcing the prevention of money laundering and terrorist financing in Lithuania, the recommendations of MONEYVAL will continue to be implemented and the measures will be applied for the risk management of money laundering and terrorist financing, including the regulation concerning the subjects performing the activity related to virtual currency, the reviewing of the applied preventive measures.
MONEYVAL periodically assesses the progress of the countries in the prevention of money laundering and terrorist financing, their compliance to the international standards and provides recommendations to the responsible institutions of the countries on the more efficient risk management and for more effective prevention of money laundering and terrorist financing.