Coordination center is needed to implement sanctions – Lithuanian's rep

  • 2021-12-13
  • BNS/TBT Staff

VILNIUS – A single coordination center is needed for the implementation of international economic sanctions as well as those imposed by individuals countries, a board member of the central Bank of Lithuania says.

Such a center could involve all state institutions and would help to avoid complicated situations, Simonas Krepsta says.

"The issue of the implementation of sanctions in Lithuania is a difficult one as we have many institutions involved in this process and we should have a single coordination center that would facilitate the operation of official and private establishments and would answer a lot of questions financial market participants and businesses have," Krepsta told the public radio LRT on Monday.

In his words, EU and UN sanctions come into force in Lithuania automatically and financial market participants and other institutions have no questions about that. But sanctions imposed by the US and other states do not come into force in Lithuania automatically as additional legislation is needed for that.

"In this case, banks or fintech companies are exceptional in some sense as the majority of them comply with US sanctions, even if they do not _de jure_ apply in Lithuania," Krepsta said.

"Both banks and fintech companies act very responsibly regarding money laundering prevention and it's also important for them to preserve their good reputation as certain violations of US sanctions might negatively affect payments in US dollars and relations with other European and global banks," he said.

Belaruskali product shipments via Lithuania did not stop after the US sanctions came into force on December 8. The foreign and transport ministers have already handed in their resignation letter over the existing situation.