MisterTango fined for non-compliance with AML requirements. What are the consequences to be expected?

No sooner had the financial world moved away from the news about the suspension of the activities of AS “PNB Banka” (formerly known as Norvik banka) than it was stirred up by news of the imposition by the Bank of Lithuania of a fine on a payment service providers MisterTango, UAB. Let’s consider the details.
Why did the Bank of Lithuania impose a fine on MisterTango?
The Bank of Lithuania imposed the fine of 245 thousand euros on MisterTango, UAB for violations of anti-money laundering and terrorist financing (AML / CTF) requirements, limiting its activities as a preventive measure. This is the third similar suggestion for this payment system since 2016.
The Bank of Lithuania’s official statement published on the website on October 25, 2019 cites the statement of the Bank’s board member Marius Jurgilas that serious and systematic violations of the Republic of Lithuania Law on the Prevention of Money Laundering and Terrorist Financing, in some cases committed repeatedly, were found in MisterTango, UAB. In particular, the payment service provider did not pay enough attention to the customer verification, transaction monitoring and risk assessment.
Implications of Bank of Lithuania decision for MisterTango
The Bank of Lithuania obliged the payment system to provide a plan of the identified deficiencies correction within 20 business days and actually eliminate them by January 31, 2020. At the same time, MisterTango will be able to provide payment services only to the lowest risk clients and only upon updating their KYC information.
Consequences of Bank of Lithuania sanctions on MisterTango Customers
Clients that do not meet the above-mentioned criteria will temporarily be unable to use the payment system services, but they can withdraw their funds to accounts in other payment systems and banks.
It is worth noting that customers of another payment service provider, ePaymants, have encountered a limitation of services earlier. As a result, the payment system ePaymants completely stopped opening accounts for high-risk and offshore companies, as well as has subsequently closed all accounts opened for this type of companies.
What should current and potential MisterTango customers do?
We do not recommend waiting for the expiration of the sanctions, but opening accounts with other banks and payment systems right now. Because waiting could result in the loss of valuable time and suspension of your business.
Mayon Solutions has many years of experience in opening accounts for high-risk companies, established contacts with dozens of banks and payment systems. We will help you to open an account for any activity permitted by law quickly. You just need to contact us.
Our long-term experience in the field of registration of international companies, opening of bank and merchant accounts, licensing and tax planning will help to choose the optimal solution especially for you.
We will be glad to help you too!