|
|
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
Lithuania has a blacklist of over 60 deemed low-tax jurisdictions.
Payments made by Lithuanian companies to foreign companies
registered in any of those jurisdictions are generally subject to a
15% withholding tax.
____________________________________________________
US State Department Money Laundering Report - 2011:
Lithuania is not a regional financial center. Lithuania has
adequate legal safeguards against money laundering; however,
its geographic location makes it a target for smuggled goods and
tax evasion. The sale of narcotics does not generate a significant
portion of money laundering activity in Lithuania. Value added tax
(VAT) fraud is one of the biggest sources of illicit income, through
underreporting of goods’ value. Most financial crimes, including
VAT embezzlement, smuggling, illegal production and sale of
alcohol, capital flight, and profit concealment, are tied to tax
evasion by Lithuanians. There are no reports of public corruption
contributing to money laundering or terrorist financing.
Lithuania has Free Economic Zones (FEZ) in the cities of
Klaipeda and Kaunas. As of yearend 2010, there are 20
businesses operating in the Klaipeda FEZ, and nine in the
Kaunas FEZ. The companies operating in the zones have the
same accounting and identification responsibilities as those
operating outside the zones. Lithuania’s EU accession agreement
permits the indefinite operation of existing free trade zones, but
precludes the establishment of new ones.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All crimes approach
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, credit unions, and financial leasing firms;
insurance companies and brokers; lawyers, notaries, tax advisors,
auditors, and accountants; investment and management
companies; real estate brokers and agents; gaming enterprises;
postal services; and dealers in art, antiquities, precious metals
and stones and high-value goods
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, credit unions, and financial leasing firms;
insurance companies and brokers; lawyers, notaries, tax advisors,
auditors, and accountants; investment and management
companies; real estate brokers and agents; gaming enterprises;
postal services; and dealers in art, antiquities, precious metals
and stones and high-value goods
Number of STRs received and time frame: 213 in 2009; about 200
-- January through November 2010
Number of CTRs received and time frame: Approximately 700 by
December 2010
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 16 from January 2010 to December 15, 2010
Convictions: One
Assets forfeited: criminally: Approximately 73 million litas
(approximately $30 million) in 2009; approximately $93 million litas
(approximately $37 million) in 2010 civilly: Not applicable
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Lithuania is a member of MONEYVAL, a Financial Action Task
Force (FATF)-style regional body. Its most recent mutual
evaluation can be found here: http://www.coe.
int/t/dghl/monitoring/moneyval/Countries/Lithuania_en.asp
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The Government of Lithuania has a comprehensive anti-money
laundering/counter-terrorist financing regime and is continually
enhancing its laws and regulations as necessary to adhere to
international standards.
In 2008, an Irishman was arrested in Vilnius and charged with,
among other charges, seeking to aid a terrorist organization. The
Irishman was apprehended while meeting a Lithuanian agent
posing as an arms dealer. His trial is ongoing.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 1)
Lithuania is a source, transit, and destination country for women
and girls subjected to sex trafficking. There were also government
reports that Lithuanian boys and girls were subjected to forced
theft in foreign countries. Forty percent of identified Lithuanian
trafficking victims are women and girls who are sex trafficking
victims exploited within Lithuania. Lithuanian women are also the
victims of sex trafficking in the United Kingdom (UK), Germany,
Spain, the Netherlands, Greece, Italy, France, and the Czech
Republic. A small number of women from Russia and Belarus are
transported through Lithuania en route to Western Europe, where
they are subsequently subjected to forced prostitution.
The Government of Lithuania fully complies with the minimum
standards for the elimination of trafficking. The government
ensured that all trafficking offenders convicted this year were
sentenced to prison terms commensurate with the gravity of crime
committed. In prevention activities, the government reinstituted its
national working group and adopted innovative new software to
enhance its ability to investigate human trafficking offenses.
However, the Lithuanian government struggled to investigate and
prosecute labor trafficking offenses. The number of victims
identified by the government decreased by approximately 50
percent. The government’s funding of victim assistance programs
increased modestly over the previous year, though it remained
inadequate.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
The Lithuanian military was an active participant in multinational
operations against terrorist and insurgent elements. In Iraq,
Lithuania maintained four trainers serving in the NATO Training
Mission-Iraq. In Afghanistan, Lithuania led a Provincial
Reconstruction Team in Ghor Province that is responsible for
maintaining a stable environment throughout the province and
coordinating reconstruction efforts. Lithuania contributed
approximately 215 personnel to NATO’s International Security
Assistance Force.
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
Lithuania has a blacklist of over 60 deemed low-tax jurisdictions.
Payments made by Lithuanian companies to foreign companies
registered in any of those jurisdictions are generally subject to a
15% withholding tax.
____________________________________________________
US State Department Money Laundering Report - 2011:
Lithuania is not a regional financial center. Lithuania has
adequate legal safeguards against money laundering; however,
its geographic location makes it a target for smuggled goods and
tax evasion. The sale of narcotics does not generate a significant
portion of money laundering activity in Lithuania. Value added tax
(VAT) fraud is one of the biggest sources of illicit income, through
underreporting of goods’ value. Most financial crimes, including
VAT embezzlement, smuggling, illegal production and sale of
alcohol, capital flight, and profit concealment, are tied to tax
evasion by Lithuanians. There are no reports of public corruption
contributing to money laundering or terrorist financing.
Lithuania has Free Economic Zones (FEZ) in the cities of
Klaipeda and Kaunas. As of yearend 2010, there are 20
businesses operating in the Klaipeda FEZ, and nine in the
Kaunas FEZ. The companies operating in the zones have the
same accounting and identification responsibilities as those
operating outside the zones. Lithuania’s EU accession agreement
permits the indefinite operation of existing free trade zones, but
precludes the establishment of new ones.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All crimes approach
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, credit unions, and financial leasing firms;
insurance companies and brokers; lawyers, notaries, tax advisors,
auditors, and accountants; investment and management
companies; real estate brokers and agents; gaming enterprises;
postal services; and dealers in art, antiquities, precious metals
and stones and high-value goods
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, credit unions, and financial leasing firms;
insurance companies and brokers; lawyers, notaries, tax advisors,
auditors, and accountants; investment and management
companies; real estate brokers and agents; gaming enterprises;
postal services; and dealers in art, antiquities, precious metals
and stones and high-value goods
Number of STRs received and time frame: 213 in 2009; about 200
-- January through November 2010
Number of CTRs received and time frame: Approximately 700 by
December 2010
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 16 from January 2010 to December 15, 2010
Convictions: One
Assets forfeited: criminally: Approximately 73 million litas
(approximately $30 million) in 2009; approximately $93 million litas
(approximately $37 million) in 2010 civilly: Not applicable
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Lithuania is a member of MONEYVAL, a Financial Action Task
Force (FATF)-style regional body. Its most recent mutual
evaluation can be found here: http://www.coe.
int/t/dghl/monitoring/moneyval/Countries/Lithuania_en.asp
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The Government of Lithuania has a comprehensive anti-money
laundering/counter-terrorist financing regime and is continually
enhancing its laws and regulations as necessary to adhere to
international standards.
In 2008, an Irishman was arrested in Vilnius and charged with,
among other charges, seeking to aid a terrorist organization. The
Irishman was apprehended while meeting a Lithuanian agent
posing as an arms dealer. His trial is ongoing.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 1)
Lithuania is a source, transit, and destination country for women
and girls subjected to sex trafficking. There were also government
reports that Lithuanian boys and girls were subjected to forced
theft in foreign countries. Forty percent of identified Lithuanian
trafficking victims are women and girls who are sex trafficking
victims exploited within Lithuania. Lithuanian women are also the
victims of sex trafficking in the United Kingdom (UK), Germany,
Spain, the Netherlands, Greece, Italy, France, and the Czech
Republic. A small number of women from Russia and Belarus are
transported through Lithuania en route to Western Europe, where
they are subsequently subjected to forced prostitution.
The Government of Lithuania fully complies with the minimum
standards for the elimination of trafficking. The government
ensured that all trafficking offenders convicted this year were
sentenced to prison terms commensurate with the gravity of crime
committed. In prevention activities, the government reinstituted its
national working group and adopted innovative new software to
enhance its ability to investigate human trafficking offenses.
However, the Lithuanian government struggled to investigate and
prosecute labor trafficking offenses. The number of victims
identified by the government decreased by approximately 50
percent. The government’s funding of victim assistance programs
increased modestly over the previous year, though it remained
inadequate.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
The Lithuanian military was an active participant in multinational
operations against terrorist and insurgent elements. In Iraq,
Lithuania maintained four trainers serving in the NATO Training
Mission-Iraq. In Afghanistan, Lithuania led a Provincial
Reconstruction Team in Ghor Province that is responsible for
maintaining a stable environment throughout the province and
coordinating reconstruction efforts. Lithuania contributed
approximately 215 personnel to NATO’s International Security
Assistance Force.
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if any
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| LITHUANIA |
| KnowYourCountry |
|
|
Extracted from IMF Report: Republic of Lithuania; 2011
Article IV Consultation (November 2011)
Lithuania’s compliance with the international AML/CFT standard, the
Financial Action Task Force’s (FATF) 40+9 Recommendations, was
assessed by MONEYVAL, the FATF-style regional body of which it is a
member, in January 2006. The ensuing AML/CFT assessment report
was adopted by the MONEYVAL Plenary in November of that same
year. Since then it has produced two progress reports, the first of which
was adopted in March 2008 and the most recent report was adopted in
March 2010. At the occasion of Lithuania’s latest progress report the
significant steps taken by Lithuania over the past years were
acknowledged. At the same time the country indicated that it was still
working on amending its Criminal Code to unify its money laundering
definitions, to bring this definition in line with the Vienna and
Palermo Conventions and to ensure dissuasive criminal sanctions
against money laundering. According to the authorities, since the
assessment report was adopted better customer due diligence (CDD)
measures were introduced, including regarding the identification of
shareholders of legal persons, and improvements were made regarding
the obligation to transmit suspicious transaction reports (STRs). They
also stated progress was made in the areas of implementation of UN
instruments and the freezing and confiscation of terrorist assets.
Article IV Consultation (November 2011)
Lithuania’s compliance with the international AML/CFT standard, the
Financial Action Task Force’s (FATF) 40+9 Recommendations, was
assessed by MONEYVAL, the FATF-style regional body of which it is a
member, in January 2006. The ensuing AML/CFT assessment report
was adopted by the MONEYVAL Plenary in November of that same
year. Since then it has produced two progress reports, the first of which
was adopted in March 2008 and the most recent report was adopted in
March 2010. At the occasion of Lithuania’s latest progress report the
significant steps taken by Lithuania over the past years were
acknowledged. At the same time the country indicated that it was still
working on amending its Criminal Code to unify its money laundering
definitions, to bring this definition in line with the Vienna and
Palermo Conventions and to ensure dissuasive criminal sanctions
against money laundering. According to the authorities, since the
assessment report was adopted better customer due diligence (CDD)
measures were introduced, including regarding the identification of
shareholders of legal persons, and improvements were made regarding
the obligation to transmit suspicious transaction reports (STRs). They
also stated progress was made in the areas of implementation of UN
instruments and the freezing and confiscation of terrorist assets.
| Last Updated: 16 April 2012 |