Description

Lithuania

Business ID: L#20240640

This Lithuania Electronic Money Institution (EMI) is a financial institution that is licensed and regulated by the Bank of Lithuania to provide electronic money payment services in the country. EMIs are an important part of the financial ecosystem as they offer innovative and convenient ways for consumers to manage their money electronically.

The Bank of Lithuania is responsible for overseeing and regulating EMIs to ensure that they comply with the relevant laws and regulations. This includes conducting thorough due diligence on the management team, assessing the financial stability of the institution, and setting capital requirements to protect customers’ funds.

EMIs play a key role in the digital economy by enabling consumers to make electronic payments, transfer money internationally, and manage their money through online and mobile platforms. They provide a secure and convenient way for consumers to access and use electronic money without the need for a traditional bank account.

In Lithuania, EMIs have become increasingly popular as consumers seek faster, more efficient, and cost-effective ways to manage their money. With the rise of e-commerce and online shopping, EMIs are well-positioned to meet the growing demand for digital payment solutions.

One of the key advantages of using an EMI is the ability to make fast and secure electronic payments without the need for a physical wallet or cash. This is especially important in the era of digitalization, where consumers are increasingly using smartphones and other electronic devices to make purchases.

Another benefit of using an EMI is the ability to transfer money internationally at a lower cost compared to traditional banks. EMIs offer competitive exchange rates and low fees, making them an attractive option for consumers who frequently send money abroad.

Furthermore, EMIs are known for their innovative and customer-centric approach to financial services. They offer a wide range of financial products and services, including prepaid cards, mobile wallets, and peer-to-peer payments, to meet the diverse needs of consumers.

Overall, Lithuanian Electronic Money Institutions are playing a vital role in the country’s financial sector by providing innovative and convenient ways for consumers to manage their money electronically. With the increasing popularity of digital payments and the rise of the digital economy, EMIs are well-positioned to drive financial inclusion and promote economic growth in Lithuania.

Permissions available within the EMI license:

• Execution of payment transactions, including transfers of funds on a payment account with the payment service provider of the payment service user or with another payment service provider: execution of direct debits, including one-off direct debits, execution of payment transactions through a payment card or a similar device and/or execution of credit transfers, including standing orders
• Issuing of payment instruments and/or acquiring of payment;
• Issuing of electronic money
• Distribution and redemption of electronic money
• Provision of currency exchange services
• Year of company incorporation:  2017

Passportation: passported in 29 EU countries to provide financial services

Capital: ~450,000 EUR (the capital is used for liquidity management and is distributed among company accounts in various jurisdictions). The Company plans to be profitable in H2 2023.

Directors/Staff: the company has three Board Members (2 residents of Lithuania), strong CEO (ex-central bank), COO, MLRO/Head of Compliance, etc. – a total of 17 staff. The staff is willing to stay in the company (separate agreements will be needed to reach with each).

Financial reports: the financial reports are submitted to the Bank of Lithuania quarterly and to Lithuanian Tax authority and Business Registry every year, it is audited by independent 3rd party financial audit firm each year since 2017. The company’s current income is 60k-70k EUR per month with similar expenses (all profit is reinvested).

Partner Banks and other PSPs: the company has 1-2 operational, 2-3 safeguarding and 3-5 payment accounts in different jurisdictions (Lithuania, the U.K., China, Hong Kong, U.S.).

Other correspondent partners: the company is a member of CENTROlink by the Bank of Lithuania and issues its own EUR IBANs for SEPA payments (with its own 2 aBICs from SWIFT), also has access to local bank/ payment accounts in the U.K., U.S., etc. through local partners. It also has pre-agreements for card issuance and acquiring services from multiple providers.

SWIFT: the company has 2 non-connected aBICs from SWIFT, which is used to issue EUR SEPA reachable IBANs through CENTROlink. The Company provides SWIFT payments through the Barclays UK.

Shareholders: 100 percent of the company is directly owned by a company in Hong Kong, while indirectly the company has 3 UBOs (1 citizen of the EU, 2 citizens of China)

Company activity: the company has been fully operational since 2018. No clients – ~600, no. of IBANs/Accounts issued – ~10000+, and monthly transactions turnover of ~10-13 Million EUR. The company is about to be profitable in Q4, but it invested heavily in employees, products and compliance/AML in the last 2 years (3 outside AML audits in the last few years, the last one having barely any findings).

IT Platform: the company uses SaaS model for banking core system (including various modules such as Open Banking, AML, Sanctions screening, General Ledger, IBAN issuance, SEPA payments, SWIFT payments, Front- end). The company has also developed its own KYC, transaction monitoring, KYC and other data management tools and workflows. It additionally has its own front-end fully developed and connected to the banking core system.

Other 3rd party tools: the company has an agreements with Ondato, iDenfy (for customer authentication via live photo) and Lexis Nexis (for databases for sanctions, PEP, negative information), also Information Security Officer and cybersecurity firm, 3rd party internal audit company, etc,.

AML and Legal documents: the company has all necessary and supplementary procedures, policies and manuals, counting to 40-50 documents. The company has mapped and implemented Kaizen strategies (similar to LEAN) since 2022 to improve efficiency of all its processes.

Price: 30% for 2.8 million EUR; 45% for 3.9 million EUR; 51% for 5.2 million EUR; 100 % for 7.5 million EUR, 10-15 percent deposit upon signing the agreement dedicated to the upkeep of the company during the approval period, which would be refunded in case of loss of license/serious sanctions or if seller changes their mind.