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As expected, they were looking for a purely formal reason to revoke the Fundstr's license because they couldn't say directly that they don't like the adult business. After all, Lithuanians don't have sex apparently.
The Bank of Lithuania (LB) has revoked the license of electronic money institution Fundstr for serious violations of money laundering prevention. The company can no longer provide any financial services and will have to refund funds to customers.
This decision was made by the board of the central bank after an inspection of Fundstr found that the company did not properly monitor customers at high risk of money laundering or terrorist financing, even though it specialized in this area.
"During the entire inspection period, the institution did not have an appropriate process for monitoring business relationships and transactions that was consistent with the institution's business model. The institution did not establish sufficient measures for monitoring client business relationships and transactions that would be sufficient to timely and effectively detect unusual or suspicious client activities or payment transactions," the LB stated.
According to him, Fundstr did not identify or evaluate suspicious operations, nor did it report suspicious transactions to the Financial Crimes Investigation Service.
According to the LB, although the company reported that it had taken measures to eliminate the violations, this was done only formally, in order to avoid the revocation of the license, and not to actually control the risks of money laundering.
Three years ago, the central bank fined Fundstr EUR 8,000 because the company did not meet its capital requirements.
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