Ranked by: EUROPEAN BANKING LICENSE LITHUANIAN SPECIALISED BANK
LITHUANIAN SPECIALISED BANK Prestigious pan-European banking license opening world’s biggest single financial market of European Union and European Economic Area. Lithuanian Specialised Bank license issued by the European Central Bank through the Bank of Lithuania (Lithuanian central bank and financial regulator). License opens all EU/EEA banking and financial markets at significantly lower incorporation and operational costs. 1 000 000 eur Banking services provided by Specialised Specialised Bank is only restricted to Bank: provide: MINIMAL CAPITAL Lending Investment or pension fund management REQUIREMENT Payment services Securities brokerage Receipt of deposits Investment advice Currency exchange and other investment management related services Issuing of e-money Issuing guarantees Fund administration LICENSE Financial leasing Financial intermediation FOR ALL Creditworthiness assessment services Safe-deposit box rental EU/EEA AREA and all other traditional banking services 2
ORGANIZATIONAL STRUCTURE OF THE SPECIALISED BANK REQUIREMENTS FOR GENERAL MEETING OF THE MANAGEMENT AND KEY THE SHAREHOLDERS FUNCTION HOLDERS Head of the Internal Managers of the Specialised Bank must have high repute, the qualification Audit Service SUPERVISORY BOARD and experience allowing them to perform their duties properly. (AT LEAST 3 MEMBERS) Audit Committee Specialised Bank can start business activities having 10 management employees including supervisory and management board members. There is no requirement for all supervisory and management board members to reside in Lithuania. Nevertheless, at least one head of the bank’s Risk Committee MANAGEMENT BOARD administration must be in Lithuania and speak Lithuanian. Credit Committee (AT LEAST 3 MEMBERS) Brief description of the management structure: / Supervisory Board ( at least 3 members) / Management Board ( at least 3 members) / CEO and Deputy CEO ( 2 , can be the members of the Management Board) CEO / Head of the Internal Audit Service ( 1 , can be a member of the Supervisory Board) / Audit Committee (can be a members of the Supervisory Board) / Risk Committee (can be a members of the Supervisory Board) / Credit Committee (can be a members of the Management Board) / CTO – Chief Technical Officer ( 1 ) / CRO – Chief Risk Officer ( 1 can be a member of the Management Board) CTO CRO DEPUTY CEO CLO CFO / CLO – Chief Legal Officer/Compliance officer ( 1 ) / CFO – Chief Financial Officer ( 1 can be a member of the Management Board) 3
LITHUANIA IS ONE OF THE BEST EU/EEA BANKING JURISDICTION 8 Fast licensing process. Remote client verification allowing REASONS WHY identification of the client without physical presence. Minimal capital requirement – EUR 1 mill. No requirement for all top managers and board members to be Lithuanian/ European residents. Direct access to all EU/EEA banking market Special residence permits of all Schengen and Single Euro Payments Area (SEPA). zone for the citizens of non-EU/EEA countries. Deposits up to the amount of EUR 100 000 Licensing documentation can be submitted insured according to EU Deposit Insurance in English . Scheme. 4
LICENSING PROCESS We encourage all prospective applicants to contact us as early as possible in their planning process so that we can discuss and help assess their proposed operating plans. This allows us to be clearer in explaining the authorisation process and its meaning, our requests, requirements, expectations and all other major aspects that may affect the authorisation process. 01 02 03 04 05 Assessment of the business Pre-application. Preparation of Submission of an application Assessment of an application Licensing decision. After the plan and shareholder structure. the presentation and preliminary to the Bank of Lithuania. and licensing documentation. assessment application the Preliminary assessment of presentation of Applicant’s Submission of the licensing Bank of Lithuania starts assess- Bank of Lithuania provides Applicant’s business model and shareholder structure and documentation to the Bank ment procedure and transfers recommendations and submits shareholder/UBO structure by business model to the Bank of of Lithuania and official documentation to the European them to the ECB. Final decision ECOVIS. Recommendations and Lithuania. Information presented acceptance of the application Central Bank (ECB). Both regarding the grant of the advice on the improvement in the form of questionnaires for consideration. Bank of Lithuania and ECB in license taken by the ECB. of the business model usually and the presentation. Meeting parallel assess the application. providedat this stage. between the officials from the Regulatory questions, comments Bank of Lithuania and Applicant and requests to submit additional usually organized. Result of the information usually provided. Pre-application is preliminary regulatory feedback regarding the licensing perspectives. Pre-application stage also includes submission of your documentation to the Investors Assessment Commission. 5
MAIN DOCUMENTATION SUBMITTED FOR APPLICATION FOR THE SPECIALISED BANK LICENSE 01 05 Draft incorporation documentation. An operating plan for next 3 years with financial forecasts. 02 06 A programme of operations (based on the business Descriptions of management systems, risk management, IT plan and information from the client). systems and policies; accounting system and accounting policies. 03 07 Documents proving formation of the capital. Organizational structure profile. 04 08 A description of the internal control system, internal audit, Data on financial institutions managers, shareholders, AML prevention, compliance, hiring, outsourcing, information regarding their experience and impeccable managing conflicts of interests, rules of accepting deposits, repute. crediting policy and procedures, creditworthiness assessment rules, complaint handling etc. 6
REGULATORY COSTS AND CONTRIBUTIONS LICENSE SUPERVISION FEE FEE 4 157 eur Approved every year, 0,0196 % from the average annual assets. DEPOSIT CONTRIBUTION INSURANCE TO CONTRIBUTION RESOLUTION FUND Currently 0.1 % from the total annual amount Contributions to the Resolution Fund and of insured deposits. contributions for administration of the fund. Highest possible annual amount fixed in the law 0,5 per cent from the total amount of insured deposits held. 7
ECOVIS – LEADING FINANCIAL LICENSING ADVISOR ECOVIS International is a Currently ECOVIS is the most ECOVIS ProventusLaw ranked ECOVIS handle all the licensing Deep local knowledge and leading global consulting experienced financial licensing by IFLR1000 in Banking and processes, from the preparation international expertise of the network bringing together advisor in Lithuania. The firm Finance and by Chambers and of documentation in client’s interdisciplinary network of more than 7500 professionals has successfully advised more Partners in Fintech. Head of home country, until the ECOVIS professionals makes in over 80 countries worldwide. than 35 companies getting financial institutions practice submission of whole licensing ECOVIS different from other ECOVIS ProventusLaw lawyers different financial licenses in group Inga Karulaityte is ranked package to the regulator licensing service providers. and ECOVIS Proventus auditors Lithuania for their pan-European as highly regarded lawyer by and communication with the are Lithuanian member firms business. IFLR1000 and recommended regulator. of ECOVIS International. by LEGAL500 in Banking and Finance. Inga Karulaityte and Loreta Andziulyte are ranked by Chambers and Partners in Fintech. 8
ECOVIS FINANCE INSTITUTION LICENSING TEAM LEADERS Inga Karulaityte – Kvainauskiene Loreta Andziulyte Head of the group / Attorney at law Partner / Attorney at law / licensing and regulatory / mobile payments / payment services / data protection / electronic money / compliance / banking / employment / Fintech / IT & IP / insurance ranked by: ranked by: Aidas Ramanauskas Kestutis Kvainauskas Partner / Certified Auditor Partner / Attorney at law / internal audit and financial / banking control procedures / securities / accounting policy / investment management / financial forecasts / licensing / crowdfunding 9
ECOVIS LICENSING TEAM TASKS DISTRIBUTION COVERING BOTH Legal – Regulatory and Financial – Business plan parts of the Attorneys-at-law Certified auditors Members of the Bar Association Banking consultants licensing process. LEGAL AND REGULATORY PART FINANCIAL AND BUSINESS PLAN PART Preparation of the licensing documentation Internal audit and financial control procedures Representation at the Bank of Lithuania Financial forecasts and projections (Regulator) Accounting policies and descriptions Shareholders and management clearance Software and IT systems Trademark registration and company Programme of operations incorporation AML and compliance Internal documentation and policies Organizational structure Coordination of licensing process Personal data protection 10
Contact ECOVIS in Lithuania ECOVIS ProventusLaw ADDRESS TEL EMAIL MORE INFO Mesiniu st. 5, LT-01133 + 370 (5) 2124084 vilnius@ecovis.lt www.ecovis.lt Vilnius, Lithuania
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