In this Master's thesis, based on the Council of Europe, the European Union, Lithuania's national legislation, scientific literature and works of the international organizations, the concept and the process, methods of money laundering, ways to create an effective money laundering supervision system in the state and the development of legal regulation is examined. In the first chapter, the concept and the process, methods of money laundering, the negative impact on the state economy and institutions is examined. In this chapter, based on the Financial Action Task Force (FATF) works, some specific methods of money laundering were examined in detail: trade-based money laundering, money laundering related with gold, diamonds, new payment methods, casinos and gambling sector. This chapter reveals how money laundering is carried out in these specific areas and how it can be identified and prevented by collaborating with the authorities. In the second chapter, the creation of an effective anti-money laundering supervision system in the state is examined by indicating the main tasks for the states, obligations to their responsible authorities and by providing principles of an effective anti-money laundering supervision system. This chapter also analyzes the existing organizational approaches of effective anti-money laundering supervision and which approach has been chosen by Lithuania and other countries of the world. In the third chapter, the development of the Council of Europe, the European Union and the Lithuanian national legislation in the field of money laundering prevention is examined. As law offenders discover new ways to launder money and due to the technology advancements, the legal framework also required to be improved in order to ensure effective prevention of money laundering.
In this Master's thesis, based on the Council of Europe, the European Union, Lithuania's national legislation, scientific literature and works of the international organizations, the concept and the process, methods of money laundering, ways to create an effective money laundering supervision system in the state and the development of legal regulation is examined. In the first chapter, the concept and the process, methods of money laundering, the negative impact on the state economy and institutions is examined. In this chapter, based on the Financial Action Task Force (FATF) works, some specific methods of money laundering were examined in detail: trade-based money laundering, money laundering related with gold, diamonds, new payment methods, casinos and gambling sector. This chapter reveals how money laundering is carried out in these specific areas and how it can be identified and prevented by collaborating with the authorities. In the second chapter, the creation of an effective anti-money laundering supervision system in the state is examined by indicating the main tasks for the states, obligations to their responsible authorities and by providing principles of an effective anti-money laundering supervision system. This chapter also analyzes the existing organizational approaches of effective anti-money laundering supervision and which approach has been chosen by Lithuania and other countries of the world. In the third chapter, the development of the Council of Europe, the European Union and the Lithuanian national legislation in the field of money laundering prevention is examined. As law offenders discover new ways to launder money and due to the technology advancements, the legal framework also required to be improved in order to ensure effective prevention of money laundering.
In this Master's thesis, based on the Council of Europe, the European Union, Lithuania's national legislation, scientific literature and works of the international organizations, the concept and the process, methods of money laundering, ways to create an effective money laundering supervision system in the state and the development of legal regulation is examined. In the first chapter, the concept and the process, methods of money laundering, the negative impact on the state economy and institutions is examined. In this chapter, based on the Financial Action Task Force (FATF) works, some specific methods of money laundering were examined in detail: trade-based money laundering, money laundering related with gold, diamonds, new payment methods, casinos and gambling sector. This chapter reveals how money laundering is carried out in these specific areas and how it can be identified and prevented by collaborating with the authorities. In the second chapter, the creation of an effective anti-money laundering supervision system in the state is examined by indicating the main tasks for the states, obligations to their responsible authorities and by providing principles of an effective anti-money laundering supervision system. This chapter also analyzes the existing organizational approaches of effective anti-money laundering supervision and which approach has been chosen by Lithuania and other countries of the world. In the third chapter, the development of the Council of Europe, the European Union and the Lithuanian national legislation in the field of money laundering prevention is examined. As law offenders discover new ways to launder money and due to the technology advancements, the legal framework also required to be improved in order to ensure effective prevention of money laundering.
In this Master's thesis, based on the Council of Europe, the European Union, Lithuania's national legislation, scientific literature and works of the international organizations, the concept and the process, methods of money laundering, ways to create an effective money laundering supervision system in the state and the development of legal regulation is examined. In the first chapter, the concept and the process, methods of money laundering, the negative impact on the state economy and institutions is examined. In this chapter, based on the Financial Action Task Force (FATF) works, some specific methods of money laundering were examined in detail: trade-based money laundering, money laundering related with gold, diamonds, new payment methods, casinos and gambling sector. This chapter reveals how money laundering is carried out in these specific areas and how it can be identified and prevented by collaborating with the authorities. In the second chapter, the creation of an effective anti-money laundering supervision system in the state is examined by indicating the main tasks for the states, obligations to their responsible authorities and by providing principles of an effective anti-money laundering supervision system. This chapter also analyzes the existing organizational approaches of effective anti-money laundering supervision and which approach has been chosen by Lithuania and other countries of the world. In the third chapter, the development of the Council of Europe, the European Union and the Lithuanian national legislation in the field of money laundering prevention is examined. As law offenders discover new ways to launder money and due to the technology advancements, the legal framework also required to be improved in order to ensure effective prevention of money laundering.
Electronic Money: Issues of Legal Regulation Consistent legal regulation of e-money in European Union has started by adoption of the Directive 2000/46/EB - it was the first legal act which has set the definition and basic rules on e-money institutions. Despite the fact that Commission had seen e-money as potential to encourage electronic commerce and innovation in EU and probably the way to cashless society, the first e-money Directive was far from reaching these objectives and instead of fostering innovation and competition, hindered it. The Directive 2000/46/EB had created an inconsistent legal regime for e-money institutions: prudential rules were still too restrictive and the idea of considering e-money institutions as a subcategory of credit institution was highly doubtful. The definition of e-money received a lot of criticism, because it had created legal uncertainty, Directive's scope of applicability was unclear and open to interpretations. The main shortcomings were recognized and the new e-money Directive 2009/110/EB has made significant changes in legal regulation of e-money. First of all, e-money institutions are not considered as a subcategory of credit institutions anymore. The concept of e-money is now more closely linked to payment services rather than credit institutions. As a result, more proportionate prudential requirements are set: lover capital requirements, possibility to deploy other activities, etc. Furthermore, the Directive 2009/110/EB has established more technically neutral and simpler definition of e-money, stating that e-money is electronically, including magnetically, stored monetary value as represented by a claim on the issuer which is issued on receipt of funds for the purpose of making payment transactions and which is accepted by a natural or legal person other than the electronic money issuer. Most issues of legal regulation are largely caused by the newness of e-money as means of payment, ambitious Commission's choice of early regulation, lack of consideration of consistent and appropriate definition of e-money and realistic predictions of future market development.
Electronic Money: Issues of Legal Regulation Consistent legal regulation of e-money in European Union has started by adoption of the Directive 2000/46/EB - it was the first legal act which has set the definition and basic rules on e-money institutions. Despite the fact that Commission had seen e-money as potential to encourage electronic commerce and innovation in EU and probably the way to cashless society, the first e-money Directive was far from reaching these objectives and instead of fostering innovation and competition, hindered it. The Directive 2000/46/EB had created an inconsistent legal regime for e-money institutions: prudential rules were still too restrictive and the idea of considering e-money institutions as a subcategory of credit institution was highly doubtful. The definition of e-money received a lot of criticism, because it had created legal uncertainty, Directive's scope of applicability was unclear and open to interpretations. The main shortcomings were recognized and the new e-money Directive 2009/110/EB has made significant changes in legal regulation of e-money. First of all, e-money institutions are not considered as a subcategory of credit institutions anymore. The concept of e-money is now more closely linked to payment services rather than credit institutions. As a result, more proportionate prudential requirements are set: lover capital requirements, possibility to deploy other activities, etc. Furthermore, the Directive 2009/110/EB has established more technically neutral and simpler definition of e-money, stating that e-money is electronically, including magnetically, stored monetary value as represented by a claim on the issuer which is issued on receipt of funds for the purpose of making payment transactions and which is accepted by a natural or legal person other than the electronic money issuer. Most issues of legal regulation are largely caused by the newness of e-money as means of payment, ambitious Commission's choice of early regulation, lack of consideration of consistent and appropriate definition of e-money and realistic predictions of future market development.
Money laundering – is a complicate process, the primary aim of which is provision of visually legitimate origin to the property acquired in criminal manner or suppression of property origin. Primary aim of any money laundering operation is dual: first, it is strived to conceal the crimes, from which the income comes, i.e. predicate crimes, and when it is succeeded to do that, criminals strive to ensure that it would be possible to use this income at their own discretion. Criminal responsibility for legalization of money or property acquired in criminal manner, or otherwise called money laundering, in Lithuania is stipulated by an article BK 216. This research paper analyzes the features of money laundering contents; the problems that arise upon establishment or evaluation of one or the other money laundering features are analyzed. In order to unfold and explain thoroughly the features of money laundering the research paper also examines international and European legal acts, by which the states undertake to criminalize money laundering, stipulate strict prevention measures of money laundering, also other international instruments intended to fight money laundering. Eventually, the author seeks to establish and evaluate whether the features of money laundering contents consolidated in legal acts of the Republic of Lithuania correspond to the compulsory provisions of international legal acts, especially of the European Union.
Money laundering – is a complicate process, the primary aim of which is provision of visually legitimate origin to the property acquired in criminal manner or suppression of property origin. Primary aim of any money laundering operation is dual: first, it is strived to conceal the crimes, from which the income comes, i.e. predicate crimes, and when it is succeeded to do that, criminals strive to ensure that it would be possible to use this income at their own discretion. Criminal responsibility for legalization of money or property acquired in criminal manner, or otherwise called money laundering, in Lithuania is stipulated by an article BK 216. This research paper analyzes the features of money laundering contents; the problems that arise upon establishment or evaluation of one or the other money laundering features are analyzed. In order to unfold and explain thoroughly the features of money laundering the research paper also examines international and European legal acts, by which the states undertake to criminalize money laundering, stipulate strict prevention measures of money laundering, also other international instruments intended to fight money laundering. Eventually, the author seeks to establish and evaluate whether the features of money laundering contents consolidated in legal acts of the Republic of Lithuania correspond to the compulsory provisions of international legal acts, especially of the European Union.
Money laundering – is a complicate process, the primary aim of which is provision of visually legitimate origin to the property acquired in criminal manner or suppression of property origin. Primary aim of any money laundering operation is dual: first, it is strived to conceal the crimes, from which the income comes, i.e. predicate crimes, and when it is succeeded to do that, criminals strive to ensure that it would be possible to use this income at their own discretion. Criminal responsibility for legalization of money or property acquired in criminal manner, or otherwise called money laundering, in Lithuania is stipulated by an article BK 216. This research paper analyzes the features of money laundering contents; the problems that arise upon establishment or evaluation of one or the other money laundering features are analyzed. In order to unfold and explain thoroughly the features of money laundering the research paper also examines international and European legal acts, by which the states undertake to criminalize money laundering, stipulate strict prevention measures of money laundering, also other international instruments intended to fight money laundering. Eventually, the author seeks to establish and evaluate whether the features of money laundering contents consolidated in legal acts of the Republic of Lithuania correspond to the compulsory provisions of international legal acts, especially of the European Union.
Money laundering – is a complicate process, the primary aim of which is provision of visually legitimate origin to the property acquired in criminal manner or suppression of property origin. Primary aim of any money laundering operation is dual: first, it is strived to conceal the crimes, from which the income comes, i.e. predicate crimes, and when it is succeeded to do that, criminals strive to ensure that it would be possible to use this income at their own discretion. Criminal responsibility for legalization of money or property acquired in criminal manner, or otherwise called money laundering, in Lithuania is stipulated by an article BK 216. This research paper analyzes the features of money laundering contents; the problems that arise upon establishment or evaluation of one or the other money laundering features are analyzed. In order to unfold and explain thoroughly the features of money laundering the research paper also examines international and European legal acts, by which the states undertake to criminalize money laundering, stipulate strict prevention measures of money laundering, also other international instruments intended to fight money laundering. Eventually, the author seeks to establish and evaluate whether the features of money laundering contents consolidated in legal acts of the Republic of Lithuania correspond to the compulsory provisions of international legal acts, especially of the European Union.
Innovations in the field of the electronic payment instruments were determined by a fast development of technologies and electronic commerce. Electronic money, as one of kinds of the electronic payment instruments, gradually becomes an important subject of research performed by representatives of economics and law sciences. By adopting the Directive 2000/46/EC of the European Parliament and of the Council (of 18 September 2000) on the taking up, pursuit of and prudential supervision of the business of electronic money institutions and the Directive 2000/28/EC of the European Parliament and of the Council (of 18 September 2000) amending the Directive 2000/12/EC relating to the taking up and pursuit of the business of credit institutions, the concerted regulation of legal relations in the field of electronic money was established in the European Union Law and now is being reviewed seeking, first of all, to soften some of requirements applied to the electronic money institutions. "Electronic money", following the Directive 2000/46/EB, shall mean the monetary value which is: (i) stored on an electronic device; (ii) issued on receipt of funds of an amount not less in value than the monetary value issued; (iii) accepted as means of payment by undertakings other than the issuer. Electronic money can be considered an electronic surrogate for coins and banknotes, which is stored on an electronic device such as a chip card or computer memory. Furthermore, it is prohibited to be engaged in activities on the electronic money issue for entities other than credit institutions. Meanwhile, Lithuania, on May 1st, 2004, having entered into the European Union as a full member state, has undertaken to harmonize the national law with the law of the European Union in the field of electronic money. When estimating the implementation of provisions of the European Union legal acts in the national law, it may be noticed that provisions of the European Union legal acts, as a matter of fact, have been duly transferred to the national law, with except of certain inaccuracies especially in the sense of terminology.
Innovations in the field of the electronic payment instruments were determined by a fast development of technologies and electronic commerce. Electronic money, as one of kinds of the electronic payment instruments, gradually becomes an important subject of research performed by representatives of economics and law sciences. By adopting the Directive 2000/46/EC of the European Parliament and of the Council (of 18 September 2000) on the taking up, pursuit of and prudential supervision of the business of electronic money institutions and the Directive 2000/28/EC of the European Parliament and of the Council (of 18 September 2000) amending the Directive 2000/12/EC relating to the taking up and pursuit of the business of credit institutions, the concerted regulation of legal relations in the field of electronic money was established in the European Union Law and now is being reviewed seeking, first of all, to soften some of requirements applied to the electronic money institutions. "Electronic money", following the Directive 2000/46/EB, shall mean the monetary value which is: (i) stored on an electronic device; (ii) issued on receipt of funds of an amount not less in value than the monetary value issued; (iii) accepted as means of payment by undertakings other than the issuer. Electronic money can be considered an electronic surrogate for coins and banknotes, which is stored on an electronic device such as a chip card or computer memory. Furthermore, it is prohibited to be engaged in activities on the electronic money issue for entities other than credit institutions. Meanwhile, Lithuania, on May 1st, 2004, having entered into the European Union as a full member state, has undertaken to harmonize the national law with the law of the European Union in the field of electronic money. When estimating the implementation of provisions of the European Union legal acts in the national law, it may be noticed that provisions of the European Union legal acts, as a matter of fact, have been duly transferred to the national law, with except of certain inaccuracies especially in the sense of terminology.
Innovations in the field of the electronic payment instruments were determined by a fast development of technologies and electronic commerce. Electronic money, as one of kinds of the electronic payment instruments, gradually becomes an important subject of research performed by representatives of economics and law sciences. By adopting the Directive 2000/46/EC of the European Parliament and of the Council (of 18 September 2000) on the taking up, pursuit of and prudential supervision of the business of electronic money institutions and the Directive 2000/28/EC of the European Parliament and of the Council (of 18 September 2000) amending the Directive 2000/12/EC relating to the taking up and pursuit of the business of credit institutions, the concerted regulation of legal relations in the field of electronic money was established in the European Union Law and now is being reviewed seeking, first of all, to soften some of requirements applied to the electronic money institutions. "Electronic money", following the Directive 2000/46/EB, shall mean the monetary value which is: (i) stored on an electronic device; (ii) issued on receipt of funds of an amount not less in value than the monetary value issued; (iii) accepted as means of payment by undertakings other than the issuer. Electronic money can be considered an electronic surrogate for coins and banknotes, which is stored on an electronic device such as a chip card or computer memory. Furthermore, it is prohibited to be engaged in activities on the electronic money issue for entities other than credit institutions. Meanwhile, Lithuania, on May 1st, 2004, having entered into the European Union as a full member state, has undertaken to harmonize the national law with the law of the European Union in the field of electronic money. When estimating the implementation of provisions of the European Union legal acts in the national law, it may be noticed that provisions of the European Union legal acts, as a matter of fact, have been duly transferred to the national law, with except of certain inaccuracies especially in the sense of terminology.
Innovations in the field of the electronic payment instruments were determined by a fast development of technologies and electronic commerce. Electronic money, as one of kinds of the electronic payment instruments, gradually becomes an important subject of research performed by representatives of economics and law sciences. By adopting the Directive 2000/46/EC of the European Parliament and of the Council (of 18 September 2000) on the taking up, pursuit of and prudential supervision of the business of electronic money institutions and the Directive 2000/28/EC of the European Parliament and of the Council (of 18 September 2000) amending the Directive 2000/12/EC relating to the taking up and pursuit of the business of credit institutions, the concerted regulation of legal relations in the field of electronic money was established in the European Union Law and now is being reviewed seeking, first of all, to soften some of requirements applied to the electronic money institutions. "Electronic money", following the Directive 2000/46/EB, shall mean the monetary value which is: (i) stored on an electronic device; (ii) issued on receipt of funds of an amount not less in value than the monetary value issued; (iii) accepted as means of payment by undertakings other than the issuer. Electronic money can be considered an electronic surrogate for coins and banknotes, which is stored on an electronic device such as a chip card or computer memory. Furthermore, it is prohibited to be engaged in activities on the electronic money issue for entities other than credit institutions. Meanwhile, Lithuania, on May 1st, 2004, having entered into the European Union as a full member state, has undertaken to harmonize the national law with the law of the European Union in the field of electronic money. When estimating the implementation of provisions of the European Union legal acts in the national law, it may be noticed that provisions of the European Union legal acts, as a matter of fact, have been duly transferred to the national law, with except of certain inaccuracies especially in the sense of terminology.
The idea of the restitution of the Lithuanian national monetary system for the first time was discussed openly on May 26, 1988 at the meeting of scientists at the Institute of Economics of the Academy of Sciences, where professor Stasys Uosis for the first time openly expressed the idea of the restitution of the Lithuanian national monetary system. Some scientists, among them the nomenclature of soviet banks, spoke, against the idea of litas. In spring 1989, the group of the creation of independent Lithuanian monetary and credit system was organized, in which lecturers of Vilnius University Finance and Credit Department and bankers-practitioners took part. In half a year the conception of independent Lithuanian monetary and credit system and the projects of related laws were prepared. When on March 11, 1990 the Independence was restored, the ossibilities to create the real, functioning central bank and national currency appeared. But the newly re-established the Bank of Lithuania had neither premises nor resources. It had only several workers, the Board hadn't been organized. When Vilius Baldišis was appointed Chairman of the Board of the Bank of Lithuania and the Statute of the Bank of Lithuania was approved, the main tasks in the monetary sphere were formulated, the concrete work began. On November 5, 1991 the Supreme Council adopted the publishing of Money Law. The Committee of Litas was founded. Its task was to fix the litas emission date. At the beginning of 1992 it was already prepared to introduce litas, but because of the inflation politics of the Government of that time the infroduct of litas became impossible - litas would quickly devaluate, the mere idea of litas as the national currency symbol would be discredited. The prices jumped up sharply, the lack of goods grew. The Government changed the order of selling the deficit goods by coupons (product cards). On July 29, 1991 the new common coupons were introduced. They were not money, but only universal trade cards. This change of the trade order did not diminish the problems. In this situation, the Bank of Lithuania suggested not to put coupons in circulation and only in case of necessity to use them as temporary money, but the government did not pay attention to this suggestion. The shortage of rouble cash began, the salaries, pensions, various payments and grants were not paid in time. Rouble signs were printed and emitted in Russia. For the political and economical reasons there was no possibility to expect the accession of cash from the USSR State Bank, so the Bank of Lithuania was looking for possibilities to emit the substitutes of rouble. On May 1, 1992 new coupons as the substitutes of rouble were put in circulation. With their help the bigger part of the arrears was liquidated. At the same time trade by common coupons (universal trade cards) was stopped. Life changed the plans of the creation of national monetary system. It was decided to introduce temporary money. When the Government changed, the Committee of Litas on September 16, 1992 adopted the decision that from October 1, 1992 only temporary money-coupons would be circulating in the territory of the Republic of Lithuania. Roubles were changed into coupons in the ratio 1:1. This way on October 1, 1992 the national currency was introduced and the own monetary system re-established in Lithuania. The Bank of Lithuania acquired the possibility to fulfil the main function of the Central Bank - to regulate the turnover of money, to apoly instruments of monetary policy. The growth of the amount of money and inflation process slowed down, and from December I, 1992 the exchange rate of coupon against rouble became stronger. The variation of the exchange rate of coupon towards convertible currencies became smaller, though their exchange rates towards our money grew. The state had a possibility to prepare for changing temporary money-coupons into litas.
