ConnectPay was fined 110,000 Eur – Verslo inios

The fine was imposed after a specific inspection of the company and the violation of the wager was identified, the Bank of Lithuania announced.

The inspection identified a case in which the company misidentified the client, its representative or beneficiary, was unable to verify the criminal’s proper identification process, incorrectly assessed the client’s risk of money laundering and terrorist financing, and misleading information about the purpose and nature of the business relationship.

Suddenly, a risk assessment of all their money laundering and terrorist financing activities was not carried out, a weakness was identified in the internal control procedures for the implementation of international financial sanctions.

The company informed the Bank of Lithuania that it had already taken measures to strengthen the field of money laundering prevention by increasing the number of specialists working in the field of compliance and investing in technological solutions.

He is said to have a plan

The company itself declares in a press release that the fine was imposed for deficiencies in 2018. January 2019 in October.

It is stated that, in cooperation with the Service and taking into account the identified areas for improvement, the company approved a deficiency plan, which was largely implemented before discussion at the Bank of Lithuania.

It is natural that the Access Service of the Bank of Lithuania has decided to carry out a specific inspection of ConnectPay activities in 2019. It was one of the fastest growing in Lithuania in terms of customer volume and turnover. The regulator places extremely high demands on the financial technology sector for the prevention of money laundering and terrorist financing, and our goal, from the outset, is to understand and comply with these requirements as much as possible, and to become an example in this area through the application of innovative solutions, Saulius Raceviius, Chairman of the Board of ConnectPay.

ConnectPay had planned to triple its investments in money laundering and terrorist financing prevention this year before the Access Service inspected. Total 2020 750,000 euros will be allocated to this area.

Mon estimates that the number of employees working in the field of money laundering and terrorist financing prevention has tripled in recent years.

Of ConnectPay’s current 50 employees, 25% work with money laundering and terrorist financing prevention. Additionally, the company’s decision will be subject to an independent audit against money laundering in June.

ConnectPay prioritizes the prevention of money laundering and terrorist financing. Starting this week, we start with an independent audit planned to hire one of Lithuania’s best lawyers, who will again check to see if the new procedures and processes are working properly. It is important to mention that the Prevention of Money Laundering and Terror Financing Law leaves a lot of room for interpretation, so we greatly appreciate the opportunity to work closely with the regulator, says S. Raceviius.

ConnectPay’s revenue increased sevenfold last year, to $ 1.54 million. EUR. According to the latest data from the Bank of Lithuania, ConnectPay is the second largest email client per protected client. Suddenly money in Lithuania, and according to customer service, the amount of the payment is the fourth.

ConnectPay provides digital financial services to international business clients. 100% of UABConnectPay shares are owned by Deependra Singh Bhartari, a British citizen and venture capital investor, who has 17 years of experience in the payments and software market. Invest in multi-sector online businesses.

Lithuania chose D. Bhartari for his investments due to the favorable legal conditions for companies in the field of financial technologies (fintech) and Lithuanian partners with experience in the field of finance. ConnectPay executives have experience in institutions such as SEB, Western Union, Invest in Lithuania or IBM.

Rayti’s Comments