Financial Services, Internet, Technology

International Internet Magazine. Baltic States news & analytics Tuesday, 16.07.2019, 05:33

Controversial market players eye Lithuania's fintech sector, intelligence warns

BC, Vilnius, 05.02.2019.Print version
Those eyeing Lithuania's fast-growing financial sector include controversial market players using shady business management schemes, the country's intelligence bodies warned on Tuesday, informed LETA/BNS.

"The increasingly widening geography of potential investors in the financial sector ranges from Cayman Islands to Vanuatu," the State Security Department and the Second Investigation Department under the Defense Ministry said in their National Threat Assessment 2019. 

"Seeking to conceal the actual beneficiaries and reduce the tax burden, these actors employ sophisticated and shady business management schemes that are implemented through egal entities based in preferential tax zones," they said, without giving any names.

The stream of investors concealing their actual beneficiaries is unlikely to subside in the future, according to report. 

"This negative trend will create additional risks to Lithuania, while some potential investors with ties to hostile intelligence and security services will pose a threat to Lithuania's national security," the bodies said.

In recent years, Lithuania's authorities have taken proactive steps to encourage the development of the country's innovative financial technology sector.  

In an effort to become a regional fintech hub, Lithuania has simplified licensing procedures and has been implementing a public relations strategy.

The country has already attracted some well-known international companies, such as Google, Revolut, TransferGo and InstaReM.

Around 170 fintech companies operated in Lithuania in 2018, almost 1.5 times as many as in 2017, according to figures from the central bank.

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