ABC Projektai gets payment license back after legal battle

By Gloria Methri

In a landmark ruling, the European Court of Justice (ECJ) has ruled that ABC Projektai can regain its banking licence, four years after it was revoked by the Bank of Lithuania.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 payments fintech, had its banking license revoked in April 2020 for allegedly holding customers’ money longer than necessary for online transactions.

In a detailed verdict, the court recognized ABC Projektai’s proactive measures and commitment to compliance and changed the penalty from permanent license withdrawal to full repayment as of July 1, 2024.

The court ruled that the main accusation against ABC Projektai regarding exceeding the limits of its payment institution license was invalid.

The legal representative of ABC Projektai from the Lithuanian law firm MOTIEKA, Justinas Jarusevicius, said: “I appreciate the conclusions of the Supreme Court of Lithuania condemning the revocation of ABC Projektai’s license. I am confident that the professional management of ABC Projektai will do everything in its power to continue their strong contribution to doing business in the right way.”

The court found that the first revocation was harsh and disproportionate, that the previous accusation was invalid because there was no evidence of willful misconduct by the company and that FinTech had taken steps to correct its mistakes after the ruling.

ABC Projektai was among the first wave of FinTech companies to receive an electronic payment institution license from the BoL in 2016. Until April 2020, ABC Projektai operated in Lithuania.

An ABC Projektai spokesperson said: “This full vindication is a great relief, as it validates our operational practices and unfailing commitment to regulatory compliance. We are pleased with this decision and remain committed to maintaining the highest standards of compliance and operational integrity. We look forward to continuing to serve our customers with the utmost dedication and professionalism.”

During the procedure, ABC Projektai received support from other EU Member States, including Germany, Poland and the Czech Republic, and from the European Commission.