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The Bank of Lithuania has appointed a temporary representative to oversee fintech Kevin EU’s operations due to significant concerns about the company's safety and reliability.
This action aims to protect consumer interests after the regulator identified serious issues with the company's financial reporting and internal controls.
Launched in 2018, the payment institution has expanded outside the EU and into the United Arab Emirates.
However, it is nearly four months late in submitting its audited annual financial statements for 2023, having repeatedly postponed the deadline and failed to provide necessary information to auditors.
The company has also not complied with equity capital adequacy requirements and has inadequate internal control measures.
To address these issues, the Bank of Lithuania has appointed the closed joint-stock company Valnetas to supervise Kevin EU’s activities.
The central bank has set an August 30, 2024 deadline for Kevin EU to submit its audited 2023 annual reports, the decision of the general meeting of shareholders on profit or loss distribution, the auditor's conclusion and the audit report.
All managerial decisions related to Kevin EU’s activities will require the consent of the temporary representative, which will continuously report on the company's activities to the Bank of Lithuania.
The representative will not take over management, ensuring current customers are unaffected and can continue using services.
In addition, the Bank of Lithuania has instructed Kevin EU to halt payment services to new customers until it meets equity capital adequacy requirements.
