Global: Lithuania revokes Transactive Systems UAB’s licence over AML failures

Transactive Systems UAB – which is a subsidiary of UK-based, FCA regulated Transactive Systems Ltd – has been told it can no longer offer financial services. The firm must inform clients about the loss of licence within five working days and return any funds to them through accounts held with another provider.

Among its failures, Transactive Systems UAB failed to properly identify clients, their representatives and beneficiaries; enabled the opening of anonymous accounts; failed to ensure adequate monitoring of business relationships and transactions; and did not have any control measures to detect cases of terrorist financing.

The central bank says that it received “numerous complaints and enquiries” from Lithuanians as well as financial market supervisory authorities of various EU Member States about the company – and it had already restricted the firm’s activities back in January.

Transactive Systems UOB was a significant player in the Lithuanian market: in 2022, it was second among electronic money and payment institutions in the country in terms of annual turnover – €13.1 billion. According to audited data, its operating income amounted to nearly €4 million.