On June 30, 2022, the Law of the Republic of
Lithuania on the Prevention of Money Laundering and Terrorist Financing (law
No. VIII-275) amending Articles 2, 9, 25 and supplementing the Law with Article
25-3 was adopted. Changes tighten the requirements for the activities of
virtual currency exchange operators and/or depository virtual currency wallet
operators (hereinafter- VASP) and aim to increase the transparency of the
segment and strengthen the management of various risks.
The changes that take effect on the dates
indicated are listed below.
Enters into force on November 1, 2022:
- For VASP (private/public
limited liability company – UAB/AB), the minimum authorized share capital
is increased to 125,000 euros (the authorized share capital requirement of
2,500 euros currently applies). In addition, VASPs who have started to
operate before the date of entry into force of this law and intend to
continue to operate after the date of entry into force of this law, and
whose authorized capital does not reach the value of 125 000 euros
determined by the amendments, must submit the documents required to
register the authorized share capital to the administrator of State
Enterprise Centre of Registers no later than on December 31, 2022.
- Managing employees are
prohibited from working for more than one VASP company unless several
such entities belong to the same group of companies.
- It is established that the main
activity of VASP must be carried out in Lithuania. The VASP cannot carry
out its principal activities and provide services in another country and
perform only functions or services in Lithuania that are not relevant to
the nature of the activity of such an entity, or not perform activities in
Lithuania at all.
- VASP must have a senior manager
who is a permanent resident of Lithuania, as defined by the Law on
Personal Income Tax of the Republic of Lithuania.
- Only natural persons of
impeccable reputation can be members of the management and supervisory
bodies and beneficiaries of VASP.
Enters into force on February 1, 2023:
- The administrator of the
register of legal entities manages the lists of VASPs established in the
Republic of Lithuania and branches of VASPs of member states of the
European Union or foreign states and publishes them on its website.
- It is established that the VASP
must take measures to determine and verify the identity of the client and
beneficiary before performing virtual currency exchange operations or
transactions in virtual currency with funds equal to or exceeding 700
euros (until February 1, 2023, 1 000 euros) or an amount corresponding to
it in foreign or virtual currency, or before depositing or withdrawing
virtual currency from the deposit wallet of virtual currencies, the amount
of which is equal to or exceeds 700 euros (until February 1, 2023, 1 000
euros) or an amount corresponding to it in foreign or virtual currency,
regardless of whether the transaction is concluded in one or several
interconnected transactions (the value of the virtual currency is
determined at the time of the monetary transaction or transaction), except
in cases where the identity of the client and the beneficiary has already
been established.
Enters into force on January 1, 2025:
- The VASP must collect, store,
and provide transfer or other transaction information about the initiator
(a natural person or legal entity) of the transaction and information
about the recipient of the transaction (a natural person or legal entity)
to the virtual currency exchange operator, depository virtual currency
wallet operator or financial institution in order to identify suspicious
monetary transactions and, if necessary, take measures when performing a
virtual currency exchange.
If you have any
questions or comments, please do not hesitate to contact our Tax team at
lithuania.tax@leinonen.eu.
05.08.22
