Banker's Academy AML Training by Country

Anti Money Laundering (AML) By Country: Lithuania

Anti Money Laundering (AML) in Lithuania

Money laundering in Lithuania is a very realistic threat, as the country is affected by corruption and organized crime activities which jeopardizes the country’s growing economy. To protect against the threat of these and other fraud related crimes, Lithuania has instituted a reliable Anti Money Laundering (AML) system.

In 1997, the Parliament of the Republic of Lithuania adopted the Law on Prevention of Money Laundering, which was later revised in 2003 in reaction to the European Union’s (EU) Second Money Laundering Directive. Additionally, this law created the Division of Prevention of Money Laundering, a part of the Financial Crime Investigation Service (FCIS),which serves as the Financial Intelligence Unit (FIU) and operates under the Ministry of the Interior.

The European Commission (EC)’s 2006 publication on the planned implementation of International Financial Reporting Standards (IFRSs) in EU member states, explains that Lithuanian-listed companies are required to prepare their annual and consolidated financial statements in accordance with IFRSs. Lithuania complies with EC Regulation No. 1606/2002, which requires all EU-listed companies to prepare consolidated accounts following IFRSs as endorsed by the EC starting January 1, 2005.

The Economy of Lithuania

The Lithuanian economy relies heavily on its trade relationship with Russia. In 1998, the Russian financial crisis crippled the Lithuanian economy but has since rebounded brilliantly. Unemployment fell to 3.2% in 2007 while wages continued to grow at double digit rates, contributing to rising inflation. Exports and imports also grew strongly, and the current account deficit rose to nearly 15% of GDP in 2007.

Privatization of the large, state-owned utilities is nearly complete. Foreign government and business support have helped in the transition from the old command economy to a market economy.

Banking in Lithuania

The Bank of Lithuania is the Central Bank of Lithuania. As the Central Bank, the Bank of Lithuania has the exclusive right to issue the currency of the Republic of Lithuania into circulation and to withdraw it.

The main goal of the Central Bank is to maintain price stability. To execute this goal, the Bank of Lithuania conducts supervision of the monetary policy, credit institutions, management of foreign reserves, in addition to fulfilling other duties.

The Bank of Lithuania is a member of the European Central Bank (ECB). The ECB’s primary responsibility is to maintain the purchasing power of the Euro. The ECB has the exclusive right to set interest rates for the Eurozone.

Lithuanian Currency

The currency of Lithuania is the Litas (LT) and is divided into 100 Centas. Banknotes are available in 10, 20, 50, 100, 200 and 500 litas denominations and coins are available in 1, 2, 5, 10, 20 and 50 centas and 1, 2 and 5 litas denominations.