The good news. The interventions of FinTelegram and lawyers at the Bank of Lithuania are having an effect. Mister Tango UAB, a regulated Lithuanian financial service provider popular with scammers and schemes, has been punished by the Bank of Lithuania and its operations have been temporarily restricted. FinTelegram and EFRI are in constant contact with regulatory authorities and inform them of any KYC/AML violations reported or discovered. FinTelegram reported on Mister Tango’s involvement in the Nexus Global MLM scheme.
The third punishment
In October 2019, the Bank of Lithuania announced that it imposed a fine of €245,000 on Mister Tango UAB for violations of anti-money laundering and counter-terrorist financing (AML/CTF) requirements and limited its activities. According to its statement, the Bank of Lithuania uncovered serious and systematic violations in the company. Apparently, this has been the third time that Mister Tango UAB has been punished for violations of AML/CTF requirements (it has already been punished in 2016 and 2018).
Inappropriate KYC/AML/CFT checks
During the inspection the Supervision Service it was established that in some cases Mister Tango failed to properly identify their clients or was negligent in their assessment of individual client risk. The KYC information was incomplete and failed to reveal the purpose and nature of business relationships and was not updated in a timely manner. Processes of monitoring transactions performed by the clients were regulated only formally, without ensuring their proper implementation. Moreover, the company did not adequately assess its business-wide risks, had no internal audit procedures, and failed to carry out AML/CTF audit during the period under inspection.
Limitations and action plan
MisterTango UAB was obligated to provide a plan to the Bank of Lithuania within 20 business days on how it will eliminate all indicated shortcomings. These will have to be remedied by 31 January 2020. Temporary limitations have been placed on the company’s activities. It was only able to provide payment services to lowest-risk clients and only upon updating their KYC information. Clients holding their funds in MisterTango UAB accounts to which the company will be prohibited to provide services will be able to apply to it for their money to be transferred to their personal accounts in banks or other credit, payment or electronic money institutions.