In a dramatic move, the Court of Justice of the European Union (CJEU) has ruled that ABC Projektai can regain their banking licence after it being revoked by the Bank of Lithuania.
ABC Projektai, formerly Bruc Bond UAB, an online payment fintech, had its banking licence revoked in April 2020 for allegedly holding customer funds longer than necessary for online transactions.
The Supreme Administrative Court of Lithuania (SACL) accepted the appeal. The ruling recognised ABC Projektai’s efforts to abide by regulations and compliance, and as a result the fintech will be able to operate under a full banking licence as of July 1, 2024.
ABC Projektai’s legal representative from the Lithuanian law firm MOTIEKA, Justinas Jarusevicius, commented: “I appreciate conclusions of the Supreme Administrative Court of Lithuania that condemned revocation of ABC Projektai license. I am extremely confident that the professional management at ABC Projektai will do all they can to continue their strong contributions to doing business the right way.”
The court stated that the initial revocation was harsh and disproportionate, and that the previous allegation was invalid as there is no evidence of intentional wrongdoing from the company, and that the fintech took action to remedy their mistakes after the ruling.
A spokesperson from ABC Projektai stated: "This complete vindication is a significant relief as it validates our operational practices and unfailing commitment to compliance with regulatory standards. We welcome this decision and remain committed to maintaining the highest standards of compliance and operational integrity. We look forward to continuing to serve our clients with the utmost dedication and professionalism.
“Oddly, we are proud that the Lithuanian central bank admitted in Court that nothing in the company's activity caused negative consequences for the customers or other financial institutions, and there were no aggravating circumstances.”
Throughout the process, the fintech was supported by several EU Member States and the European Commission.
The spokesperson added: “We are happy that the SACL wasted no time in ordering return of our license and, in addition, ordered payment of legal costs to us. We take comfort that the Court appreciated the disproportionate damage inflicted on our Company for the past four-plus years.”