Financial Crime Investigation Service

Money Laundering and Terrorist Financing Prevention

Financial Crime Investigation Service (hereinafter – Service) implements money laundering and terrorist financing prevention measures aimed at creating an effective national anti-money laundering system and ensures its proper functioning as well as conducts pre-trial investigation of legalisation of the funds and property derived from the criminal activity.

The Service is the main state institution responsible for co-ordination of cooperation of the institutions related to the implementation of money laundering prevention measures.

Prevention and analysis
The Money Laundering Prevention Division of the Analysis and Prevention Board (hereinafter – MLPD) is the main unit within the Service responsible for the prevention and analysis of money laundering and terrorist financing. It is the Lithuanian financial intelligence unit (FIU) and is obliged as follows:

collect and record the information about the monetary operations and transactions of the customer and about the customer carrying out such operations and transactions;
accumulate, analyse and publish the information relating to the implementation of money laundering and terrorist financing prevention measures;
communicate to law enforcement and other state institutions the information about the monetary operations and transactions carried out by the customer;
provide to financial institutions and other entities the information on criteria for identifying possible money laundering and terrorist financing and suspicious or unusual monetary operations or transactions;
notify financial institutions and other entities, law enforcement and other state institutions about the results of analysis of and investigation into their reports on suspicious or unusual monetary operations and transactions, on the observed indications of possible money laundering and terrorist financing or violations;
evaluate the legal acts and submit proposals about the improvement following the international standards and recommendations

Statistics
255 reports on the suspicious or unusual monetary operations or transactions (hereinafter – suspicious transaction report, STR)) were received by MLPD in 2011. 61 % of them (158 STR reports) were received from the credit institutions. After analysis 67 reports on suspicions or unusual financial activity were sent for further investigation to the Regional Boards of the Service, 74 reports – to other state institutions. 11 reports were sent to the foreign countries (financial intelligence units).

15 pre-trial investigations (including 7 investigations under the Article 216 of the Criminal Code “Legalization of money or assets derived from criminal activity” and 2 investigations under the Article 1891 “Illegal Enrichment”) were initiated on the basis of the reports on suspicions or unusual financial activity. Totally 18 pre-trial investigations concerning money laundering were initiated by the Service.

Supervision of entities
In 2011 MLPD inspected the activity of 19 entities related to implementation of money laundering and terrorist financing prevention measures. The violations were established in 10 entities; therefore, the protocols were drawn under the Article 172¹⁴of the Administrative Code “Violations of the procedures of implementation of money laundering and terrorist financing preventive measures”.

Training
In 2011 Money Laundering Prevention Division continued training programme for the staff from the financial institutions, undertakings providing accounting and tax advisory services, bailiffs, persons trading in precious metals and precious stones. MLPD delivered 12 training and trained about 400 people.

Inter-institutional co-operation in Lithuania
In 2007 the inter-institutional working group was set up by the Order of the Director of the Financial Crime Investigation Service in order to accumulate, analyse and summarize the information about the methods for legalization of money or assets derived from criminal activity as well as co-ordinate the activity for the prevention of money laundering and terrorist financing.

Seeking to ensure cooperation and exchange of available information, avoid duplication of inspection activities of the entities the Service signed the agreements with all Lithuanian institutions responsible for the implementation of the preventive measures of money laundering and terrorist financing:
  16 June 2009 with the Gaming Control Authority under the Ministry of Finance
  23 July 2009 with the Chamber of Bailiffs
  14 September 2009 with the Chamber of Auditors
  14 September 2009 with the Lithuanian Assay Office
  26 October 2009 with the Culture Heritage Department
  24 of November 2009 with the Bank of Lithuania
  10 of February 2010 with the Chamber of Notaries

International Co-operation Forums
Seeking to improve anti-money laundering system in Lithuania and to remain consistent with international standards MLPD focuses on co-operation with foreign and international institutions.