Crypto authorizations for companies in Lithuania (PART II)
In the previous part we discussed the general information regarding the crypto authorizations for companies in Lithuania. In this part we will discuss the requirements and obligations that the Lithuanian virtual asset service providers must follow and observe.
The virtual currency exchange operators and custodian virtual currency wallet operators in Lithuania are required to follow the AML/CT requirements that would be applicable to other “Obliged Entities”, other than financial institutions. These requirements include obligations such as customer identification and authentication, transaction monitoring and suspension, and reporting to authorities.
Main obligations of VASPs
Lithuanian virtual asset service providers:
- Must take measures and identify the customer and the beneficial owner as well as verify their identity before carrying out virtual currency exchange operations or transactions in virtual currency with funds amounting to 1 000 EUR or more, or the equivalent amount in foreign or virtual currency, or before depositing virtual currency to or withdrawing virtual currency from the depository virtual currency wallet in the amount equal to 1 000 EUR or more, or the equivalent amount in foreign or virtual currency, whether that transaction is carried out in a single operation or in several operations which appear to be linked (the value of the virtual currency is determined at the time the monetary operation is carried out or the transaction is concluded), except for the cases where the customer and the beneficial owner have been already identified.
- Virtual currency exchange operators must notify the Financial Crime Investigation Service (FCIS) of the customer identification data and information on performed virtual currency exchange operations or transactions in virtual currency, if the value of such monetary operation or transaction amounts to 15 000 EUR or more, or an equivalent amount in foreign or virtual currency, whether the transaction is carried out in a single monetary operation or in several operations which appear to be linked.
- Must report to the FCIS about suspicious monetary operations or transactions.
- Must establish internal policies and internal control procedures related to:
- Identification of the customer and of the beneficial owner and verification of their identity.
- Risk assessment and risk management having regard to the types of identified risk.
- Organization of monitoring of business relationships and/or operations.
- Implementation of international financial sanctions and restrictive measures.
- Submission of reports and information to the FCIS.
- Keeping of registers.
- Storage of the information specified in the Law.
- Updating of the information concerning the identification of the customer and of the beneficial owner.
- Organization of training for employees to properly familiarize them with requirements for the prevention of money laundering and/or terrorist financing.
- Must store information for the terms specified in the Law of the Republic of Lithuania on the Prevention of Money Laundering and Terrorist Financing.
In the next part we will discuss the costs and requirements of establishing a Lithuanian crypto authorized company.
To find out more about crypto companies in Lithuania and crypto authorizations for companies in Lithuania, please refer to our Baltic lawyers at firstname.lastname@example.org