Lithuania Country Summary

FATF Status

Lithuania is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Lithuania was undertaken in December 2023. According to that Evaluation, Lithuania was deemed Compliant for 9 and Largely Compliant for 27 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 1 of the Effectiveness & Technical Compliance ratings.

Lithuania has made notable strides in combating corruption, with a significant decrease in reported corruption experiences among business executives and a strong anti-corruption framework established by the Special Investigation Service. Despite these improvements, challenges such as nepotism and cronyism persist, particularly affecting small and medium enterprises, while the country grapples with various forms of organized crime, including human trafficking and drug trafficking, exacerbated by sophisticated criminal networks and external threats.

Lithuania presents a favorable economy and investment climate characterized by steady growth and a strategic location at the crossroads of Europe and Eurasia. Following a slight contraction in 2020 due to the COVID-19 pandemic, the economy rebounded with a GDP growth of 5.1% in 2021 and continued to show resilience despite external challenges, including the impacts of Russia's war in Ukraine, with a projected recovery to 2.7% growth in 2024. The government actively promotes foreign investment through equal treatment policies, tax incentives, and the establishment of Free Economic Zones, although challenges such as bureaucratic procedures and labor shortages remain concerns for investors.