E-Money Firm Claims Safeguarding Fine Announcement 'Broke Protocol'

E-money firm Paydoo Payments believes the Lithuanian central bank may have departed from accepted practice in its drive to crack down on misbehaving companies, after it was fined for failings in its safeguarding of customer funds.

The Bank of Lithuania announced this week that it had imposed a €27,000 fine on the company for “failing to hold client funds with a credit institution”. The firm provides merchant payment gateway services and has offices in Vilnius, Riga and the United States.

Payments companies that have not obtained one of Lithuania’s specialised banking licences must hold client funds in an account at a credit institution or at the Bank of Lithuania, or in “secure and liquid low-risk assets”.

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