Approval of Requirements for Electronic Money and Payment Institutions with Revoked or Suspended Licences

UNOFFICIAL TRANSLATION
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BOARD OF THE BANK OF LITHUANIA
RESOLUTION
ON THE APPROVAL OF THE DESCRIPTION OF REQUIREMENTS FOR ELECTRONIC MONEY INSTITUTIONS AND PAYMENT INSTITUTIONS WHOSE OPERATING LICENCE HAS BEEN
REVOKED OR SUSPENDED
15 April 2021 No 03-71
Vilnius

In observance of Article 42(4)(1) of the Republic of Lithuania Law on the Bank of Lithuania, the Board of the Bank of Lithuania hereby resolves:
To approve the Description of Requirements for Electronic Money Institutions and Payment Institutions whose Operating Licence has been Revoked or Suspended (annexed).

|Chairman of the Board |Gediminas Šimkus |
APPROVED by Resolution No 03-71 of the Board of the Bank of Lithuania of 15 April 2021

DESCRIPTION OF REQUIREMENTS FOR ELECTRONIC MONEY INSTITUTIONS AND PAYMENT INSTITUTIONS WHOSE OPERATING LICENCE HAS BEEN REVOKED OR SUSPENDED

CHAPTER I
GENERAL PROVISIONS

1. The provisions of the Description of Requirements for Electronic Money Institutions and Payment Institutions whose Operating Licence has been Revoked or Suspended (hereinafter – the Description) shall apply to electronic money institutions and payment institutions (hereinafter – an Institution) whose operating licences issued by the Bank of Lithuania and entitling to issue electronic money and/or provide payment services (hereinafter – an operating licence) have been revoked or suspended in accordance with the procedure laid down in Article 15 of the Republic of Lithuania Law on Electronic Money and Electronic Money Institutions or in Article 8 of the Republic of Lithuania Law on Payment Institutions, except for the cases when an operating licence is revoked at the request of the Institution itself.
   2. The Description shall set out the information and reporting requirements to be complied with by an Institution when informing electronic money holders and/or payment service users (hereinafter – customers) about the revocation or suspension of an operating licence issued to it, as well as when informing customers about the procedure of settlement with them and notifying the Bank of Lithuania about such settlement with customers.

CHAPTER II
CUSTOMER INFORMATION REQUIREMENTS

3. Upon becoming aware of a decision of the Bank of Lithuania to revoke or suspend an operating licence issued to it, an Institution must, no later than within 2 business days, inform customers thereof through its public communication channels (e.g. its website, in paper format at customer service locations, including their branches, agents and entities to which activities are outsourced). In information provided to customers, the Institution must also disclose the consequences of revocation and/or suspension of the operating licence, i.e. properly inform the customers that the Institution is no longer authorised (if the licence is revoked) or is temporarily not authorised (if the licence is suspended) to issue electronic money and/or provide payment services, except for the cases when settlement with the customers is necessary.
   4. An Institution whose operating licence has been suspended or revoked must, no later than within 5 business days, personally inform customers in writing or by means of any other durable medium the use whereof has been agreed between the Institution and the customers under concluded service provision agreements (hereinafter – Service Agreements) about the suspension or revocation of the operating licence issued to it (depending on a decision adopted by the Bank of Lithuania) and the applicable procedure for settlement with the customers.
   5. An Institution which, in addition to the services indicated in an operating licence, also provides other services (other than those indicated in the operating licence), where the suspension or revocation of the operating licence may affect the provision of other related services, shall inform the users of these services about such circumstances and/or take other actions in compliance with the provisions of service provision agreements and/or legal acts regulating such services.

CHAPTER III
REQUIREMENTS FOR SETTLEMENT WITH CUSTOMERS

6. An Institution whose operating licence has been revoked must settle with customers within the time limits specified in Service Agreements, but no later than within 15 business days from the date of the revocation of the operating licence by repaying the funds received from customers for the issuance of electronic money and/or the execution of payment transactions (hereinafter – funds) to an account indicated by a customer with a credit institution or another electronic money or payment institution or in any other manner acceptable to the customer and the Institution.
   7. An Institution whose operating licence has been revoked and which, in exceptional cases, is unable to repay funds to customers within the time limit laid down in paragraph 6 of this Description must without delay, but no later than within 2 business days, notify the Bank of Lithuania thereof, indicating the reasons for non-compliance with this requirement and another deadline for settlement with the customers, which may not be later than the maximum time limit of 2 months laid down for the adoption of the said decisions in Article 15(8) of the Republic of Lithuania Law on Electronic Money and Electronic Money Institutions or Article 8(8) of the Republic of Lithuania Law on Payment Institutions calculated from the date of the revocation of the operating licence.
   8. An Institution whose operating licence has been suspended must settle with customers only where the customers so request and/or where the Institution itself adopts a decision not to provide the services indicated in the operating licence. Settlements shall be effected in accordance with the procedure and under the conditions laid down in Service Agreements and/or legal acts.

CHAPTER IV
INFORMATION TO BE SUBMITTED TO THE BANK OF LITHUANIA

9. An Institution whose operating licence has been revoked must submit to the Bank of Lithuania a Report on Funds Repaid to Electronic Money Holders and Payment Service Users (hereinafter – a Report) in Microsoft Excel format, as set out in the Annex to this Description.
   10. The Report shall be submitted to the Bank of Lithuania by electronic means no later than within 5 business days from the last day of the time limit for the settlement of the Institution with the customers referred to in paragraph 6 of the Description. The Report’s date of the reporting period shall be the 15th business day from the date of the revocation of the operating licence.
   11. The circumstances referred to in paragraph 7 of the Description shall not relieve the Institution whose operating licence has been revoked from the duty to submit the Report within the time limits specified in paragraph 10 of the Description. In the presence of the circumstances referred to in paragraph 7 of the Description, the Institution whose operating licence has been revoked shall submit the Report to the Bank of Lithuania twice: within the time limits specified in paragraph 10 of the Description and within 5 business days from the last day of the time limit for the settlement of the Institution with the customers specified in paragraph 7 of the Description. The second Report’s date of the reporting period shall be the date of the final settlement of the Institution with customers as referred to in paragraph 7 of this Description.
   12. The Report shall contain the information and data on:
   1. the customer (the customer identification code shall be indicated);
   2. the amount of funds to be repaid to the customer in the beginning of the reporting period (at the end of the day when the operating licence was revoked or, when submitting the second Report (in accordance with paragraph 11 of the Description), at the end of the day specified in paragraph 6 of the Description) and at the end of the reporting period (at the end of the day specified in paragraph 6 or 7 of the Description) as well as the amount of funds repaid to the customer during the reporting period, indicating the date and manner of repayment of the funds. Where the funds are repaid to an account indicated by the customer, the name of a credit institution, a payment institution or an electronic money institution, including branches of these institutions, and the two-letter code of the state in which the credit institution, the payment institution or the electronic money institution or its branch is established in accordance with the ISO-3166-2 standard of the International Organization for Standardization shall be indicated.
   13. An Institution whose operating licence has been revoked must, within 5 business days, notify the Bank of Lithuania in writing about the adopted decisions as referred to in Article 15 (8) of the Republic of Lithuania Law on Electronic Money and Electronic Money Institutions or Article 8(8) of the Republic of Lithuania Law on Payment Institutions.

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Annex to the Description of Requirements for Electronic Money Institutions and Payment Institutions whose Operating Licence has been Revoked or Suspended

______________________________________________________ (name of the electronic money institution or the payment institution)

______________________________________________________ (code, address, phone, email)

REPORT ON FUNDS REPAID TO ELECTRONIC MONEY HOLDERS AND PAYMENT SERVICE USERS

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(date of revocation of the operating licence)

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(date of the reporting period)

---

(date of submission of the report)

No

Customer identification code
Amount to be repaid in the beginning of the reporting period, EUR
Amount repaid to the customer, EUR
Date of repayment of funds

    |

Way of repayment
(specify as appropriate:
repaid to an account indicated by the customer repaid in cash other (provide an explanation in the comments) |Credit institution, payment institution or electronic money institution |

Amount to be repaid at the end of the reporting period, EUR |

Comments | | | | | | | |name |state | | | | | | | | | | | | | | | | | | | | | | | | | | _______________________________________ ______________________ __________________________________________ (position of the manager) (signature) (full name)

_______________________________________ ______________________ __________________________________________ (position of the responsible executive) (signature) (full name)