Licenses

Documents required for the application

The following documentation will be required to review and prepare an application for a cryptocurrency licence:

• Valid copy of passport from home country.
• Power of attorney (PoA) (if the procedure for opening a company and obtaining a license occurs remotely).
• Company business model/detailed activity description.
• CV/Summary of experience and education of all participants in the crypto related project.
• Website address where cryptocurrency services will be offered.
• Certificate of criminal record (not more than 3 months) for owners, board members, final beneficiaries (UBO) and AML officers.
• Data of all beneficial owners (UBO) must be provided at the request of FCIS.

The cryptocurrency company must also have an AML officer. AML officer for the prevention of money laundering and terrorist financing must have previous professional experience and an impeccable reputation (Lithuanian residence is not compulsory).

The licensed company must keep a detailed and up-to-date overview of all customers and transactions in accordance with AML/KYC rules. The FCIS Control Authority can make requests about the company’s activities, especially regarding compliance with the AML/KYC policy.

Risk Assessment, KYC/AML documents and procedural rules

Before applying for a cryptocurrency license in Lithuania, it is necessary to prepare documentation on internal procedures of the company in order to meet the anti-money laundering criteria (AML) and «Know your client» (KYC) established by FCIS. Some parts of this include, for example:

Internal security measures and risk assessments

Assessment and risk management of money-laundering and terrorist financing:

• Determination of risk level.
• Risk classification.
• Nationality.
• Transaction control procedures.
• Origin of funds.
• Compliance monitoring and internal audit.
• Due diligence measures.
• Notification obligations.

• Collection and storage of information on company transactions and clients.
• Fulfilling the obligation to notify the regulator.
• Internal control rules of the company.

Procedural rules, AML/KYC procedures

• Description of lower-risk transactions and establishment of appropriate requirements and procedures for such transactions.
• A description of transactions with a higher level of risk, including risks arising from means of communication, location of customers. Other parameters and establishment of appropriate requirements and procedures for conducting and monitoring operations.
• Rules of Due Diligence.
• Customer Identification – document requirements.
• Source of welfare, proof of address of residence.
• Requirements and procedures for storing data on transactions and clients of the company.
• Regulatory Notification Requirements.

AML/KYC officer

The duties of an AML employee include:

• Assistance in the development, implementation and maintenance of an institution’s anti-money-laundering programme.
• Organization of the collection and analysis of information on suspicious transactions or transactions where there is a risk of money-laundering or the financing of terrorism.
• Submission of written statements on compliance with the requirements of this Law to the management of the Virtual Currency Exchange Service Provider or Virtual Currency Wallet Service Provider registered in the Commercial Register of Lithuania.
• High Risk Customer Accounting and Suspicious Activity Reporting.
• Communication to FCIS in case of suspicion of money laundering or financing of terrorism.
• Develop and maintain a system of risk assessment for products and services, clients and clients, as well as for other issues related to money-laundering.
• Monitor and implement a permanent AML learning program for other employees.
• Guidance and reporting to senior management on issues related to AML’s internal policies and procedures.
• Organization and conduct of inspections and audits of external organisations, and development of recommendations on compliance with regulatory requirements.

KYC/AML officer applies due diligence measures:

• When establishing a business relationship with a new client.
• When a cash payment is made in excess of 15,000 EUR or equal to in other currencies.
• When verifying information in case of doubt as to the reliability of the documents or data provided.
• In the case of suspected money laundering or financing of terrorism.

FCIS requirements for an AML compliance officer:

• Only a person who has the education, professional aptitude, abilities, personal qualities, experience and impeccable reputation necessary for the performance of the duties of AML may be appointed as an employee of AML.
• The company should provide specialized training on measures to prevent money-laundering and the financing of terrorism to its employees, especially those responsible for customer relations and transaction control.

The Compliance Specialist not only tracks and processes various confidential financial data, but also interacts regularly with the board of directors as well as financial authorities. In addition to KYC/AML, an officer of your company must have sufficient authority to ensure the effective performance of his duties. Ideally, an AML specialist should be a director-level employee with industry experience to deal with all aspects of their professional environment.