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 8 and Largely Compliant for 28 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 progress in reducing the perception and incidence of corruption within its business environment, with a significant decline in reported corruption experiences among business executives. Despite these improvements, challenges remain, particularly with nepotism and cronyism, which continue to hinder business development, especially for small and medium enterprises that often face bureaucratic hurdles and extortion.

The country grapples with various criminal activities, including human trafficking, drug trafficking, and financial crimes, while organized crime groups have become increasingly sophisticated and transnational. Nevertheless, Lithuania's commitment to combating organized crime and corruption is evident through enhanced law enforcement efforts and the establishment of a dedicated anti-corruption unit, although political fragmentation and judicial pressures pose ongoing challenges to these initiatives.

Lithuania's economy is strategically positioned at the crossroads of Europe and Eurasia, characterized by a diversified structure and a well-educated, multilingual workforce. Following a steady recovery from the 2009 economic crisis, the country experienced a GDP growth of 5.1% in 2021, although growth slowed to 2.2% in 2022 and remained mostly flat in 2023, impacted by high inflation rates driven by the geopolitical tensions from Russia's war with Ukraine. The Lithuanian government fosters a favorable investment climate by ensuring equal treatment for foreign and domestic investors, providing various incentives, and maintaining a stable regulatory framework, although challenges such as bureaucratic procedures and labor shortages persist.