Lithuania Country Summary

FATF Status

Lithuania is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Lithuania was undertaken in December 2023. According to that Evaluation, Lithuania was deemed Compliant for 8 and Largely Compliant for 28 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 1 of the Effectiveness & Technical Compliance ratings.

Recent studies indicate a decline in corruption as a business obstacle in Lithuania, with only 7% of executives reporting experiences of corruption in 2022, down from 2019. While large foreign investors generally find the bureaucratic environment reasonable, small and medium enterprises often face challenges from petty corruption and excessive red tape. Lithuania's Special Investigation Service actively combats corruption, and new anti-corruption laws aim to enhance transparency and accountability across public institutions.

Lithuania has a diversified economy that has shown steady growth since the 2009 economic crisis, with a GDP growth of 5.1% in 2021, despite a slight contraction in 2020 due to the COVID-19 pandemic. The country faced high inflation rates exceeding 20% in 2022 due to disruptions from Russia's war with Ukraine, but inflation slowed to 1.2% in 2023. Lithuania's economy benefits from a well-educated workforce, advanced IT infrastructure, and significant foreign investment, particularly from the United States, which was the largest investor by the end of 2022.

Lithuania offers a favorable investment climate characterized by equal treatment for foreign and domestic investors, minimal restrictions on profit repatriation, and various incentives for small companies and strategic investors. The government has established a one-stop-shop, Invest Lithuania, to facilitate foreign investment and ensure compliance with high investment standards as a member of the OECD. Despite some bureaucratic challenges and transportation barriers, the country presents numerous opportunities across various sectors, particularly in technology and manufacturing.