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.

Corruption in Lithuania is perceived as less of an obstacle for businesses, with a significant decline in reported experiences of corruption among executives since 2019. While large foreign investors generally find the environment supportive and fair, small and medium enterprises (SMEs) face challenges from petty bureaucrats and excessive red tape, leading to complaints of extortion. Despite the establishment of the Special Investigation Service to combat corruption and the introduction of a new anti-corruption law in 2022, issues such as nepotism and high-level corruption persist, particularly affecting public procurement and services.

Lithuania has a diversified economy that has shown steady growth since the 2009 economic crisis, with a GDP growth of 5.1% in 2021 and continued growth of 2.2% in 2022, despite challenges from the COVID-19 pandemic and geopolitical tensions. The country has a well-educated workforce and advanced IT infrastructure, and it ranks 20th among EU member states in terms of average net monthly wages. Lithuania's economy is characterized by high inflation rates due to rising energy prices, but inflation slowed to 1.2% in 2023.

Lithuania presents 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 actively promotes foreign investment through the Invest Lithuania agency, which facilitates business setup and provides information on legal and financial considerations. Despite some bureaucratic challenges and transportation barriers, the country offers diverse investment opportunities across sectors such as Information Technology, Biotech, and Real Estate.