ABC Projektai regains payments license after legal battle

By Gloria Methri

In a significant judgement, the Court of Justice (CJEU) has ruled that ABC Projektai can regain its banking licence, four years after it was revoked by the Bank of Lithuania.

ABC Projektai, formerly Bruc Bond UAB, a payment FinTech, had its banking licence revoked in April 2020 for allegedly holding customer funds longer than necessary for online transactions.

In a detailed judgment, the court recognised ABC Projektai’s proactive measures and commitment to compliance and changed the penalty from permanent licence revocation to its full return by July 1, 2024.

The court determined that the main allegation against ABC Projektai regarding exceeding the boundaries of its payment institution licence was invalid.

ABC Projektai’s legal representative from the Lithuanian law firm MOTIEKA, Justinas Jarusevicius, said, “I appreciate the conclusions of the Supreme Administrative Court of Lithuania that condemned the revocation of ABC Projektai’s 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, that the previous allegation was invalid as there is no evidence of intentional wrongdoing from the company, and that FinTech took action to remedy its mistakes after the ruling.

ABC Projektai was among the first wave of FinTech granted an electronic payment institution licence by the BoL in the year 2016 and operated in Lithuania until April 2020.

A spokesperson for ABC Projektai said, “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.”

Throughout the proceedings, ABC Projektai received support from other EU Member States, including Germany, Poland, and the Czech Republic, as well as the European Commission.