{"id":27055,"date":"2021-06-03T06:30:51","date_gmt":"2021-06-03T03:30:51","guid":{"rendered":"https:\/\/transparency.lt\/?p=27055"},"modified":"2023-07-28T14:57:33","modified_gmt":"2023-07-28T11:57:33","slug":"during-the-pandemic-the-scale-of-fraud-using-fintech-companies-has-likely-increased","status":"publish","type":"post","link":"https:\/\/transparency.lt\/en\/during-the-pandemic-the-scale-of-fraud-using-fintech-companies-has-likely-increased\/","title":{"rendered":"During the pandemic, the scale of fraud using Fintech companies has likely increased"},"content":{"rendered":"

During the pandemic, the scale of fraud using financial technology (Fintech) companies has likely increased. Supervisory institutions overseeing money laundering lack sufficient resources to prevent rapid and illegal profiting by FinTech companies, shows research conducted by Transparency International Lithuania.<\/strong><\/p>\n

According to experts that participated in the study, the biggest advantages of Fintech companies such as speed and innovation also determine the greatest money laundering risks related to their activities.<\/span><\/p>\n

Companies with the highest risks are those working with cryptocurrencies due to the higher value of these currencies.<\/span><\/p>\n

There is a lack of publicly available information provided by FinTech companies operating in Lithuania. For example, less than one out of ten companies publish their financial statements, and some companies do not even have their own websites.<\/span><\/p>\n

There is a lack of assessments as well as primary data, statistics that would allow to understand the actual extent of money laundering and risks in the FinTech sector in Lithuania. In addition, there is insufficient cooperation between public and private sector bodies, between FinTech companies.<\/span><\/p>\n

Experts question whether FinTech companies could currently ensure effective prevention of money laundering without external assistance.<\/span><\/p>\n

\u201cMoney laundering goes hand in hand with grand corruption. Knowing Lithuania\u2019s ambitions in the sector of financial technology, both institutions responsible for money laundering prevention and FinTech companies should make an extra effort. I would very much like the prevention of money laundering to become a priority for our political leaders\u201d, <\/span>said Sergejus Muravjovas, CEO of Transparency International Lithuania.<\/span><\/p>\n

Based on the main risks identified by the experts, TI Lithuania suggests:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n