Comparative analysis of the application of anti-money laundering obligations to neobanks in Lithuania and Latvia

Abstract

Money laundering is a criminal offense that has its roots in the distant past, however with the development of the technological age, new technological and financial solutions are emerging, for instance - neobanks. As a result, criminal activity is also intensifying as well as complex schemes are being developed in order to launder money. Therefore, the legislator must also be up to date with the latest financial technology trends to adopt appropriate laws to prevent money laundering and also to provide environment conducive to the development of Fintech. This bachelor's thesis was conducted in order to compare Lithuanian and Latvian legislation in the field of AML, the AML obligations regarding neobanks. As well as to analyze the legal requirements in both – Lithuanian and Latvian jurisdictions regarding one type of neobank – electronic money institutions.