Approval of the Description of the Procedure for Submitting an Application to Join the TARGET-LIETUVOS BANKAS Payment System and Periodic Updating of Participant Information

BOARD OF THE BANK OF LITHUANIA

DECISION

ON THE APPROVAL OF THE DESCRIPTION OF THE PROCEDURE FOR SUBMITTING AN APPLICATION TO JOIN THE TARGET-LIETUVOS BANKAS PAYMENT SYSTEM AND PERIODIC UPDATING OF PARTICIPANT INFORMATION

12 March 2026 No. 2026/03-18

Vilnius

Guided by point 4 of paragraph 1 of Article 8, and points 21 and 22 of paragraph 1 of Article 11 of the Law of the Republic of Lithuania on the Bank of Lithuania, the Rules of Participation in the TARGET-LIETUVOS BANKAS Payment System approved by Decision No. „On the Approval of the Rules of Participation in the TARGET-LIETUVOS BANKAS Payment System“ of the Board of the Bank of Lithuania dated 11 October 2022, and implementing the Bank of Lithuania’s policy on the prevention of money laundering and terrorist financing and the implementation of international sanctions, approved by Decision No. 03-168 „On the Approval of the Bank of Lithuania’s Policy on the Prevention of Money Laundering and Terrorist Financing and the Implementation of International Sanctions“ of the Board of the Bank of Lithuania dated 7 December 2023, the Board of the Bank of Lithuania d e c i d e s:

To approve the Description of the Procedure for Submitting an Application to Join the TARGET-LIETUVOS BANKAS Payment System and Periodic Updating of Participant Information (attached).

Chairman of the Board Gediminas Šimkus

APPROVED

by the Board of the Bank of Lithuania

Decision of 12 March 2026

No. 2026/03-18

DESCRIPTION OF THE PROCEDURE FOR SUBMITTING AN APPLICATION TO JOIN THE TARGET-LIETUVOS BANKAS PAYMENT SYSTEM AND PERIODIC UPDATING OF PARTICIPANT INFORMATION

CHAPTER I

GENERAL PROVISIONS

1. The Description of the Procedure for Submitting an Application to Join the TARGET-LIETUVOS BANKAS Payment System and Periodic Updating of Participant Information (hereinafter – the Description) sets out additional requirements for the application submission procedure established in the Rules of Participation in the TARGET-LIETUVOS BANKAS Payment System, approved by Decision No. „On the Approval of the Rules of Participation in the TARGET-LIETUVOS BANKAS Payment System“ of the Board of the Bank of Lithuania dated 11 October 2022 (hereinafter – the Rules), and requirements for updating information submitted at the time of application submission.

2. In order to become a participant of the TARGET-LIETUVOS BANKAS payment system (hereinafter – the System), the Applicant (hereinafter – the Applicant) must, together with the information specified in the Rules, also:

2.1. submit a completed System Participant Due Diligence Questionnaire (Appendix to the Description) and all documents required to be submitted together;

2.2. upon request by the Bank of Lithuania, submit an independent audit report on compliance with the requirements established in Chapter II of the Description of Requirements applicable to payment institutions and electronic money institutions participating in payment systems, approved by Decision No. 03-34 „On the Approval of the Description of Requirements applicable to payment institutions and electronic money institutions participating in payment systems“ of the Board of the Bank of Lithuania dated 6 March 2025, if the payment institution or electronic money institution holds a license issued by the Bank of Lithuania, or on compliance with requirements established in national legal acts of the country that issued the license, which transpose Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market with amendments made by Regulation (EU) 2024/886 of the European Parliament and of the Council of 13 March 2024 (PSD2) and Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems with amendments made by Regulation (EU) 2024/886 of the European Parliament and of the Council of 13 March 2024 (SFD), for payment institutions and electronic money institutions participating in payment systems, if the payment institution or electronic money institution holds a license not issued by the Bank of Lithuania;

2.3. upon request by the Bank of Lithuania, submit an independent audit report on compliance with national legal acts regulating the prevention of money laundering, terrorist financing and fraud and the implementation of international sanctions, if the Applicant is not a payment institution or electronic money institution;

2.4. upon request by the Bank of Lithuania, submit other additional information necessary for making a decision.

3. In order to become a participant of the System, an Applicant whom the Bank of Lithuania may accept under the provisions of point 2 of paragraph 2 of Article 4 of the Rules, in addition to the requirements already established in point 1 of paragraph 1 of Article 5 of the Rules, must meet the following requirements:

3.1. the beneficiaries and managers of the Applicant must be of impeccable reputation and must not pose a threat to the reputation of the Bank of Lithuania or to the national security interests of the Republic of Lithuania;

3.2. no sanctions under the Law of the Republic of Lithuania on International Sanctions or the sanctions lists of the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury, when a valid United States (US) jurisdiction is established (e.g., if a beneficiary of the Applicant sanctioned under US sanctions lists is a US citizen or resident), must be applied to the Applicant, its manager, board members, or beneficiaries;

3.3. beneficiaries of the Applicant, holding a qualified share of statutory capital and/or voting rights jointly or separately, cannot be residents or citizens of Russia, which was recognized by Resolution No. XIV-1070 of the Seimas of the Republic of Lithuania dated 10 May 2022 as a state supporting and committing terrorism due to military actions against Ukraine, and against which broad-scale European Union sanctions are also applied, or Belarus, whose Aliaksandr Lukashenko regime is recognized by Resolution No. XIV-930 of the Seimas of the Republic of Lithuania dated 24 February 2022 as actively participating in Russia’s strategy of aggression against Ukraine and assisting in gathering Russian troops on Belarusian territory, except in cases where such persons have the right to reside in the EU or EEA; there must be no companies established in Russia or Belarus within the Applicant’s corporate group.

4. After the Bank of Lithuania and the Applicant have signed the System Service Provision Agreement, the System participant must:

4.1. no later than within 10 working days, inform the Bank of Lithuania via email addresses target2@lb.lt and ridcompliance@lb.lt about changes to its name, code, parent companies, ultimate beneficiaries, manager, board members, registered office details, business plan, license or other document issued by a supervisory authority proving the right of the system participant to provide payment or investment services, as well as about any sanctions applied to it, and if it belongs to a corporate group, about all companies in such a corporate group, regarding the manager, board members, ultimate beneficiaries, and about impact measures imposed by law enforcement agencies, courts, or supervisory authorities related to the provision of financial services, and other essential changes to information submitted to the Bank of Lithuania to join the System;

4.2. upon request by the Bank of Lithuania, update the System Participant Due Diligence Questionnaire (Appendix to the Description) and submit updated documents required to be submitted together with the questionnaire.

CHAPTER II

PERSONAL DATA PROCESSING

5. The Bank of Lithuania is the controller of the personal data specified in the Description and processes data in accordance with point c and e of paragraph 1 of Article 6 of Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation, GDPR), Guidelines (EU) 2022/912 of the European Central Bank of 24 February 2022 on the new generation Trans-European Automated Real-time Gross settlement Express Transfer System (TARGET), repealing Guidelines ECB/2012/27 (ECB/2022/8), the Law of the Republic of Lithuania on International Sanctions, and other legal acts regulating the processing and protection of personal data.

6. Personal data includes the Full Names, previous Surnames (if changed), dates of birth, citizenship, previous citizenship (if changed), countries of permanent residence of the Applicant or System participant, excluding the Bank of Lithuania, manager, board members, and beneficiaries; information on whether the person is politically exposed; position in the financial institution; percentage of share ownership or voting rights of beneficiaries; position in the board and area of responsibility of board members; data on impact measures imposed by law enforcement agencies, courts, or supervisory authorities on beneficiaries and managers related to the provision of financial services; copies of identity documents of the manager (if another person acts on behalf of the Applicant, also the authorized representative to conclude transactions) and ultimate beneficiaries (holding 25% +1 shares or equivalent voting rights); manager’s curriculum vitae (CV); if another person acts on behalf of the Applicant, the Full Name, previous Surname (if changed), date of birth, citizenship, previous citizenship (if changed), country of permanent residence, and information on whether the person is politically exposed of the authorized representative to conclude transactions. These data may be obtained from the Applicant or System participant and from legal entity registers.

7. Data is processed to assess the Applicant’s or System participant’s compliance with the requirements of the Rules and Description, reputation, and suitability to participate in the System.

8. When processing personal data, the Bank of Lithuania:

8.1. adheres to the GDPR, the Law of the Republic of Lithuania on Legal Protection of Personal Data, the General Personal Data Processing Provisions of the Bank of Lithuania approved by Order No. V 2018/(1.7.E-260603)-02-113 „On the Approval of the General Personal Data Processing Provisions of the Bank of Lithuania“ of the Chairman of the Board of the Bank of Lithuania dated 20 July 2018, the Security Policy of the Bank of Lithuania approved by Decision No. 03-100 „On the Approval of the Security Policy of the Bank of Lithuania“ of the Board of the Bank of Lithuania dated 15 June 2015, the Rules on Granting Access Rights to Information Resources in the Bank of Lithuania approved by Order No. V 2024/(1.7.E-4505)-02-193 „On the Approval of the Rules on Granting Access Rights to Information Resources in the Bank of Lithuania“ of the Chairman of the Board of the Bank of Lithuania dated 27 December 2024, and other legal acts of the European Union, the Republic of Lithuania, and the Bank of Lithuania regulating the protection and proper processing of personal data;

8.2. ensures that persons authorized to process personal data are committed to ensuring confidentiality and proper processing of personal data.

9. Personal data specified in point 6 of the Description is stored during the System participant’s participation in the System and for 10 years from the date of the System participant’s deregistration from the System, as well as for 5 years from the date of rejection of the application to become a System participant. Upon expiration of the data storage period, data is destroyed manually and irrecoverably.

10. The Bank of Lithuania provides personal data to third parties only in cases established by legal acts of the European Union and the Republic of Lithuania.

11. Applicants or System participants, when fulfilling their obligations as data controllers applicable to them, inform data subjects (their financial institution’s manager, board members, and ultimate beneficiaries) that their personal data to be submitted to the Bank of Lithuania and related personal data specified in the Description will be processed by the Bank of Lithuania for the purpose specified in the Description and in accordance with applicable legal provisions. Applicants or System participants are responsible for proper, timely, and provable information of their managers, board members, and beneficiaries (data subjects) regarding the processing of their personal data by the Bank of Lithuania in accordance with the Description and applicable legal acts.

12. The Bank of Lithuania implements the rights of data subjects, whose personal data is processed in accordance with the Rules and Description, in accordance with the GDPR, the Description of the Procedure for Implementing Data Subject Rights in the Bank of Lithuania, approved by Decision No. 03-86 „On the Approval of the Description of the Procedure for Implementing Data Subject Rights in the Bank of Lithuania“ of the Board of the Bank of Lithuania dated 24 May 2018. More information on the implementation of data subject rights and the processing of personal data by the Bank of Lithuania is published on the Bank of Lithuania’s website https://www.lb.lt/en/personal-data-protection .

13. A data processor is not engaged for the processing of personal data.

14. Automated decision-making and profiling are not carried out when processing personal data, and personal data is not made public.

15. The Market Infrastructure Department of the Bank of Lithuania is responsible for the processing of personal data by the Bank of Lithuania as regulated in the Description and applicable legal acts.

CHAPTER III

FINAL PROVISIONS

16. The provisions of the Description are applied together with the Rules.

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Appendix to the

Description of the Procedure for Submitting an Application to Join the

TARGET-LIETUVOS BANKAS Payment System

TARGET-LIETUVOS BANKAS PARTICIPANT DUE DILIGENCE QUESTIONNAIRE

1. General Information about the Institution

Full name of the institution

Alternative names, trademarks

Registration code

Date of establishment

Registration address

Actual place of business address

Jurisdictions where the institution has offices / branches

VAT code

Website link

Number of institution employees

Number of employees (full-time equivalent) performing AML/CFT, sanctions compliance, and fraud prevention functions

Number of employees assigned (or to be assigned) to administer and provide TARGET-related services (full-time equivalent)

Date of commencement of commercial activity of the institution

2. Operational License

Date and country of license issuance

License type

Licensed activities

Does the operational license include the execution of payment transactions, including the transfer of funds from a payment account opened with a consumer payment service provider or another payment service provider institution? (Select Yes / No)

Yes / No

Does the operational license include the issuance of payment instruments and/or the processing of payment transactions? (Select Yes / No)

Yes / No

Name(s) and website of the supervisory institution(-ies)

Information about licenses sought to be obtained

3. Business Model

Products and services

High-risk products and services

Sources of income

Target clients

Target jurisdictions

High-risk areas of activity (industries) and jurisdictions

TARGET services

4. Key Financial and Operational Indicators (for the last full financial year)

Total equity (EUR)

Long-term assets (EUR)

Short-term assets (EUR)

Payables and liabilities (EUR)

Total revenue (EUR)

Revenue from licensed activities (EUR)

Net profit (loss) (EUR)

Total number of clients

Total number of TARGET payment transactions by clients (units)

Total value of TARGET payment transactions by clients (EUR)

Number of opened client EUR IBAN accounts (units)

Financial year for which the above data is submitted

5. TARGET Channels and Accounts at Other Financial Institutions

Available TARGET channels

Purpose and expected nature of participation in TARGET–LIETUVOS BANKAS

Justification for choosing the Bank of Lithuania as the TARGET service provider, compared to the Institution’s national central bank (not applicable to institutions licensed in Lithuania)

Accounts for client fund protection

Accounts at other financial institutions and their purpose

6. Information about the Institution’s Beneficiaries, Manager, Board Members, and Affiliated Companies

Information about beneficiaries (information about all natural persons who directly or indirectly own ≥10% of the institution’s shares or voting rights)

1 natural person

2 natural person

3 natural person, etc.

Full Name

Previous Surname (if changed)

Date of Birth

Citizenship(-ies) held

Previous citizenship (if changed)

Country of permanent residence

Is the person, his close family member, or close associate a Politically Exposed Person (PEP)*?

Position in the institution

Percentage of share ownership

Percentage of voting rights

Information about the manager and (if another person acts on behalf of the institution) the authorized representative to conclude transactions

1 natural person

2 natural person

Full Name

Previous Surname (if changed)

Date of Birth

Citizenship(-ies) held

Previous citizenship (if changed)

Country of permanent residence

Is the person, his close family member, or close associate a Politically Exposed Person (PEP)*?

Information about board members

1 natural person

2 natural person

3 natural person, etc.

Full Name

Previous Surname (if changed)

Date of Birth

Citizenship(-ies) held

Previous citizenship (if changed)

Country of permanent residence

Is the person, his close family member, or close associate a Politically Exposed Person (PEP)*?

Position in the institution

Position on the board and area of responsibility

• Politically Exposed Persons – natural persons who have or have been entrusted with prominent public functions, and their close family members or close associates.

Information about group companies (information about all legal entities specified in the corporate group structure)

1 legal entity

2 legal entity

3 legal entity, etc.

Full name of the legal entity

Registration code

Country of establishment

Area of activity and function in the corporate group

Is any ultimate beneficiary, holding any share or voting rights, a citizen or resident of Russia or Belarus?

Yes / No

Specify the total percentage of shares / voting rights

Is any ultimate beneficiary, holding any share or voting rights, included in the EU, UN, or OFAC sanctions lists?

Yes / No

Specify the total percentage of shares / voting rights

Is any group company included in the EU, UN, or OFAC sanctions lists?

Yes / No

If yes, specify the company name and type of sanctions

7. Information about the Institution’s TARGET Payments (data for the past 12 months or forecasts for the next 12 months, if the service is not yet provided)

Number of TARGET payments (units, actual)

2023

2024

2025

Outgoing payments

Incoming payments

Value of TARGET payments (EUR, actual)

2023

2024

2025

Outgoing payments

Incoming payments

Number of payments through TARGET-LIETUVOS BANKAS (units, forecast)

2026

2027

2028

Outgoing payments

Incoming payments

Value of payments through TARGET-LIETUVOS BANKAS (EUR, forecast)

2026

2027

2028

Outgoing payments

Incoming payments

Average TARGET transaction amount (EUR) (for all past calendar years or forecasts for the coming years, if the service is not yet provided)

Outgoing payments

Incoming payments

TOP 10 countries by outgoing / incoming TARGET flows, by payment value (for all past calendar years or forecasts for the coming years, if the service is not yet provided)

Outgoing payments

Incoming payments

Turnover distribution by client type (EUR) (based on TARGET payment turnover)

Natural persons (private clients)

Legal entities (business clients)

TOP 5 business client areas of activity (industries) (based on TARGET payment turnover)

Area of activity (industry)

Payment turnover (EUR) and proportion of total turnover

TOP 5 jurisdictions by client type (based on TARGET payment turnover and residence / country of establishment)

Natural persons (private clients)

Legal entities (business clients)

Number and value of TARGET outgoing payments to non-EEA countries and incoming payments from non-EEA countries (for all past calendar years or forecasts for the coming years, if the service is not yet provided)

Outgoing payments

Incoming payments

Does the institution plan to execute payments through TARGET-LIETUVOS BANKAS, typically associated with higher AML/CFT risk (e.g., trade finance, remittances, virtual assets, gambling, or adult services sector, other PSPs)?

Yes / No

8. Documents to be submitted together with the TARGET-LIETUVOS BANKAS Participant Due Diligence Questionnaire:

8.1. Extract from the Register of Legal Entities of the institution (not older than 6 months) (except for institutions established in Lithuania);

8.2. Copy of the institution’s license or link to the license information published on the official website of the license issuer (except for institutions licensed by the Bank of Lithuania);

8.3. Latest annual financial report;

8.4. Detailed visual diagram of the corporate group structure (ownership) up to the ultimate beneficiary (not older than 6 months and certified by the Institution’s manager or another competent management body);

8.5. Extract from the register of ultimate beneficiaries (not older than 6 months) (except for institutions established in Lithuania);

8.6. Copies of valid identity documents (ID card or passport) of ultimate beneficiaries (holding 25% +1 shares or equivalent voting rights);

8.7. Copy of the valid identity document (ID card or passport) of the Institution’s manager;

8.8. Curriculum vitae (CV) of the Institution’s manager;

8.9. If the Institution’s manager is represented by another person, copy of the valid identity document (ID card or passport) of the authorized representative and power of attorney.