2024-07-13 09:36:50
LB “Foxpay” ordered not to establish new business relationships and not to provide financial services to those related to the institution’s shareholder Ieva Trinkūnaita, classified as a higher risk group for money laundering and terrorist financing, as well as clients providing investment, gambling, information technology, marketing and virtual currency services.
In order to protect clients’ funds, ensure the execution of mandatory instructions and the proper provision of information to LB, the audit company “Grant Thornton Baltic” has been appointed as a temporary representative of the institution. As the authority explains, any decision of the company’s managers related to the activities of Foxpay will require the approval of this manager.
According to LB, the temporary representative does not take over the management of the institution, his appointment does not affect clients and their opportunities to use services. Foxpay will be able to continue to carry out its activities to the extent that is not limited by the obligations of the Bank of Lithuania.
Such decisions were made on the basis of establishing during the LB inspection that Foxpay during the 2022 30 September – 2024 March 20 during the period, the requirements of legal acts on the prevention of terrorist financing and internal control in this area, protection and control of customer funds and information security were not properly implemented.
In addition, the results of the inspection suggest that Foxpay had a permanent higher risk of conflicts of interest due to I. Trinkūnaitė and its related companies, which was not properly managed.
It was also established that I. Trinkūnaitė does not meet the requirements of an impeccable reputation, and in addition, a person closely related to her was included in the activities of Foxpay.
After receiving detailed explanations from Foxpay, LB will fully assess the results of the inspection and make a final decision on the measures to be applied for the detected violations.
During the inspection, the company LB provided inaccurate, incorrect and incomplete, and in some cases, contradictory information related to the institution’s clients.
2024-07-13 09:36:50