We collaborated with members of the Association of Lithuanian Banks, the Financial Crime Investigation Service and the Bank of Lithuania in preparing Guidelines on Customer Due Diligence. The purpose of the guidelines is to harmonize the processes of preventive action by market participants while achieving clarity and simplicity for users of financial services.

First such guidelines in the region

The current version of the guidelines addresses the essential area of prevention of money laundering and terrorist financing – proper customer identification. The practices described in the document are mandatory for LBA members – banks, credit unions, and specialized banks. The document is the first of its kind in the region.

Says Vytautas Danta, who chaired the working group which developed the guidelines and heads the Compliance Committee at the Association of Lithuanian Banks: “Threats of money laundering and terrorist financing encourage finance sector players to join forces and know-how not only in combating but also in preventing. The guidelines are a long-term commitment for the members of the association to follow best practices in this area. Moreover, the guidelines will help increase transparency and strengthen the reputation of the Lithuanian finance sector, while allowing our international partners to evaluate the tools that Lithuanian finance institutions apply. It is vital that we have a smooth and quick process with clear and comprehensible rules – prevention of money laundering is crucial, but these procedures must not become an obstacle to normal communication between the bank and the customer.”

The guidelines can be accessed here.

Project team

Partner Augustas Klezys and senior associate Jurgita Nikita contributed to preparing the guidelines.