Anti Money Laundering in Lithuania

Overview of AML in Lithuania

A report on money laundering was created in Lithuania in 2016 by the US Department of State's International Narcotics Control Strategy Report (INCSR). According to this report, since Lithuania is not a financial center, it has sufficient legal protection against money laundering. However, due to its geographical location on the border between Russia and Belarus, it has become a target for smuggled goods and tax evasion crimes. Value-added tax (VAT) fraud is one of the biggest sources of illegal income in Lithuania. Here, money laundering activities are often linked to fiscal crime tax evasion, such as the misappropriation of goods with low reporting of value, such as spending money on VAT, illegal capital flight, cigarette smuggling, illegal alcohol sales.

Moreover, there are some basic laws of the Republic of Lithuania on the Prevention of Money Laundering and Financing of Terrorism. For example:

  • Transformation or transfer of the property in order to assist the illegal origin of the property or anyone involved in the property.
  • The concealment of real property, origin, source, location, rights regarding property, information obtained from a criminal act, or such action of the property in question.
  • Obtaining and using the information about the property in question during the acquisition/possession of a crime 

As a result of any action referred to in the above articles, these activities are considered as money laundering activity and criminal action is applied.


FATF Status in Lithuania


Lithuania is not on the FATF Country List with strategic AML deficiencies. The last Mutual Evaluation Report for the implementation of money laundering and counter-terrorism financing standards in Lithuania was carried out in 2019. Based on this assessment, Lithuania was considered Compliant for 9 of FATF 40 recommendations and largely compatible for 23. Besides, there are no international sanctions against Lithuania.


AML Regulators in Lithuania

The following institutions are responsible for anti-money laundering and or terrorist financing in Lithuania: Government of the Republic of Lithuania, State Security Agency of the Republic, Lithuanian Financial Crime Investigation Service, Lithuanian Bank, Customs Office, Cultural Heritage Protection Agency affiliated to the Ministry of Culture, Lithuanian Notaries Chamber, Lithuania Judicial Chambers, Lithuanian Chamber of Auditors, Lithuanian Bar Association and Lithuania Analysis Office.


In addition, The Anti-Money Laundering Center of Excellence, established in Lithuania, stated that the public and private sector should combine their efforts to strengthen the framework of anti-money laundering and counter-terrorism financing (AML). Thereupon, on April 6, 2020, the establishment of the AML Center of Excellence was approved by the Government of the Republic of Lithuania. Its founders and stakeholders will be the Bank of Lithuania, the Ministry of Finance of the Republic of Lithuania, and commercial banks operating in the country. Financial Crime Investigation Service, Police Department, State Tax Inspectorate, and Prosecutor's Office are expected to take part in the activities of the center. With the establishment of the AML Center of Excellence, it is aimed to implement the most effective AML practices to reduce money laundering activities in Lithuania.


What Are the Regulated Sectors in Lithuania?

Although Lithuania is not a large financial center, some sectors still appear to be at high risk for money laundering. In Lithuania, they must regulate and monitor high-risk businesses to reduce money laundering risks. In Lithuania, the following sectors are generally considered high risk. AML regulations apply to these sectors. If any of these sectors do not comply with AML regulations, criminal proceedings are initiated.


  • Trade-in goods in cash
  • Trade-in real estate
  • Banking / Transfer of funds Banking / Cash deposits to the current account
  • Accountants, auditors, and tax advisors
  • Notaries Gambling sector / Casinos / Online gambling
  • Currency exchange offices
  • Investment companies
  • Payment / E-money institutions
  • Credit unions Non-profit organizations / Religious organizations
  • Crowdfunding platforms


To give a striking example of these sectors, a report prepared for the Gambling sector has also been rated as a maximum of 4 on a scale of 1 to 4 on the scale of casinos, who have been identified with the purpose of laundering property acquired. In Lithuania, the Casino sector is exposed to risk because this sector provides an attractive number of cash flows for organized crime groups, PEPs (Politically Exposed Person), and those who come to money laundering from high-risk countries.


Sanction Scanner Solutions for Lithuania

Sanction Scanner offers end-to-end solutions for the AML needs of businesses. The Sanction Scanner collects and structures more than 1000 sanctions and watch lists of the regulatory and law enforcement agencies of more than 200 countries with the support of Artificial Intelligence. With our PEP and Sanctions Screening Service, businesses in Lithuania can also meet global and local AML obligations and be protected from legal penalties. At the same time, businesses in Lithuania can perform CDD and KYC transactions with our AML Name Screening tool in line with their obligations.


Moreover, institutions such as banks in Lithuania can easily detect high-risk and suspicious activities automatically by creating their own rules and scenarios without any coding knowledge with Sanction Scanner's AML Transaction Monitoring software. As a result, businesses in Lithuania can be protected from potential financial crime risks and legal penalties with our advanced AML solutions. For more information, you can contact us or request a demo.


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