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ABC Projektai, CJEU, Lithuania
The Court of Justice of the European Union has ruled that ABC Projektai, a Lithuanian online payment company, can regain its banking license after it was revoked by the Bank of Lithuania.
ABC Projektai, formerly called Bruc Bond UAB, had its banking license 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 decision recognizes ABC Projektai’s efforts to adhere to regulations and comply, said a statement from ABC Projektai late last week.
The fintech company will be able to operate under a full banking license from July 1, 2024.
This case is perhaps unusual in that it shows how a court decision by a regulator banning financial activity can subsequently be overturned.
“The court, aligning with the findings of the Court of Justice of the European Union (CJEU), determined that the main allegation against ABC Projektai regarding exceeding the limits of its payment institution license was invalid,” indicates a press release from the company.
“This comprehensive justification is a significant relief as it validates our operational practices and our unwavering commitment to meeting regulatory standards,” an ABC Projektai spokesperson said in a statement.
The initial sentence of permanent dismissal was considered by the court to be excessively harsh and disproportionate given the circumstances. The court also confirmed that there was no evidence of intentional wrongdoing on the part of ABC Projektai.
ABC Projektai said it had received support from other EU member states, including Germany, Poland and the Czech Republic, as well as the European Commission.