Lithuania

Bank of Lithuania Grants Electronic Money Licenses to Two UK Companies

by Fintechnews Baltic November 20, 2020

The Bank of Lithuania issued electronic money institution licenses to UK companies FIDELIS EUROPE, UAB, and DiPocket, UAB. This authorises them to issue electronic money and provide payment services set forth in the Republic of Lithuania Law on payments.

Following Brexit, the activities of two UK-based companies will be transferred to these licensed institutions.

Activities of Probitas Fidelis Limited, a payment institution licensed in the UK, will be transferred to FIDELIS EUROPE, UAB. It will open accounts for its customers, provide cash deposit and withdrawal services, execute payment transactions, including where funds are covered by a credit line for a payment service user, issue payment instruments, perform money remittances as well as provide payment processing and currency exchange services.

The institution’s customers will mainly be legal entities, yet it will also provide services to natural persons. FIDELIS EUROPE, UAB intends to carry out its activities in Lithuania and other European Economic Area countries. 100% of its shares are held by TRESARIUM LIMITED, a holding company established in the UK.

Meanwhile, the activities of DiPocket Limited, an electronic money institution licensed in the UK, will be transferred to DiPocket, UAB. The institution will follow the business to business to consumer (B2B2C) model, where it will focus on its customers who are legal entities.

DiPocket, UAB will execute payment transactions, provide cash deposit and withdrawal services, issue payment instruments as well as provide payment initiation, account information and currency exchange services both in Lithuania and other European Economic Area countries. All of its shares are held by DiPocket Limited.

Having secured the license, the institutions are obliged to provide the Bank of Lithuania with a copy of their agreements concluded with credit institutions, confirming proper implementation of measures for safeguarding customer funds before they start providing the aforementioned financial services.

Featured image credit: Edited from Pixabay