Lithuania revokes licence of fintech implicated in Wirecard scandal:
Prosecutors suspect Finolita was used to steal more than € 100 million from a German payment company
The Lithuanian central bank has revoked the license of a local fintech involved in the Wirecard scandal for serious violations of anti-money laundering and terrorist financing regulations. Munich prosecutors suspect UAB Finolita Unio, a fintech registered in the Lithuanian capital Vilnius, was used to steal more than € 100 million from Wirecard shortly before the collapse of the German payment company, the Financial Times reported the month.
last. The Bank of Lithuania stated that Finolita is treating the anti-money laundering and terrorist financing regulations in an irresponsible way, does not assess the risks of its clients, and does not confirm their identities and beneficial owners. The Finolita case kicked off investigations in Lithuania, which has the largest number of fintechs in the bloc after the UK left the EU. Some politicians in Lithuania and Germany are calling Finolita a “warning” to the country about the need to keep up with the fast pace of the fintech sector. Marius Jurgilas, a member of the Lithuanian central bank in charge of oversight, told the Financial Times Tuesday that it would be “regrettable” if there was a perception that “we might be under pressure”.
The Lithuanian central bank contacted local payment companies in June 2020 after the German financial regulator admitted problems with Wirecard, which went bankrupt shortly after. This revealed problems to Finolita and launched a formal investigation in the fall of 2020. The investigation concluded that Finolita had violated the rules on international sanctions and the “inadequately controlled” activities of entities associated with the company.
German prosecutors suspect that a € 100 million loan granted by Wirecard in March 2020 to a subsidiary of its Finolita owner, Grupo Senjo, in Singapore, and which has been sued by Lithuanian fintech, has been channeled to the current vice-champion under the commander of Wirecard Jan Marsalek. Jurgis said a Finolita lesson “is not a related party that can be trusted.” He added that this was not the first time the central bank had revoked a fintech license, adding, “I can’t say there will be no more cases in the future.
I don’t think it proves that its nature isn’t black or white, it’s shaded. Finola said the revocation of her license is “extremely serious”, especially since she notified the central bank of suspicious payments and sold it to new investors halfway. after Senjo’s voting rights were already They were transferred to an independent director. He added that he would appeal the decision, which he called “bad news for all financial market participants” as companies try to “hide mistakes rather than openly solving a problem.”