TransferGo received a €310K fine from the Bank of Lithuania

Fintech TranferGo, founded by Lithuanian entrepreneurs, received a €310K fine from the Bank of Lithuania for breaking the law on the prevention of money laundering and terrorist financing.

The Bank found the company’s mistakes when it was assessing and managing the money laundering and terrorist financing risks of its clients. TransferGo did not always apply enhanced procedures to identify high-risk customers.

Further, then less, the regulator obliged TransferGo to eliminate mistakes by the end of the year. For example, the company did not report suspicious transactions, did not appoint a board member responsible for implementing AML (anti-money laundering)/CFT (combating the financing of terrorism) measures, and a senior manager must interact with the financial crimes investigation service (FICI). 

After this announcement, TransferGo commented that the Bank of Lithuania did not reveal any evidence of money laundering or other financial misconduct. But the service indeed has to improve its preventive procedures. By the beginning of August, the company had already corrected more than 90% of the failures. It expects all the corrections will be completed before the beginning of this year's winter.

Daumantas Dvilinskas, Justinas Lasevicius, Edvinas Sersniovas, and Arnas Lukosius founded TransferGo in 2012. The company provides money transfer services to foreigners. It can make both personal and commercial bank transfers on a digital account-to-account model. The money transfer service works with 22 currencies across 47 countries. TransferGo has offices in London, Vilnius, Berlin, Istanbul, and Warsaw.