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ABC Projektai, CJEU, Lithuania
The Court of Justice of the European Union (CJEU) has ruled that ABC Projektai, an online payments firm based in Lithuania, can regain its banking license, which was previously revoked by the Bank of Lithuania.
Previously known as Bruc Bond UAB, ABC Projektai had its banking license revoked in April 2020 due to allegations of holding customer funds longer than necessary for online transactions.
The Supreme Administrative Court of Lithuania (SACL) accepted the company’s appeal. The ruling recognized ABC Projektai’s compliance efforts and adherence to regulations, according to a statement from the company last week.
Starting 1 July 2024, the fintech firm will be able to operate under a full banking license once again.
This case highlights the rare instance where a regulatory decision to ban a financial entity is later overturned by a higher legal authority.
“The court, in agreement with the Court of Justice of the European Union (CJEU), found that the primary allegation against ABC Projektai—exceeding the limits of its payment institution license—was unfounded,” the firm stated.
“This complete vindication is a significant relief as it validates our operational practices and unwavering commitment to regulatory compliance,” a spokesperson for ABC Projektai commented.
The court deemed the initial penalty of permanent revocation excessively harsh and disproportionate under the given circumstances. It also confirmed that there was no evidence of intentional wrongdoing by ABC Projektai.
ABC Projektai noted that it received support from other EU member states, including Germany, Poland, and the Czech Republic, as well as the European Commission.
Source: wealthbriefingasia.com
