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ABC Projektai, CJEU, Lithuania
The Court of Justice of the European Union has ruled that ABC Projektai, an online payments firm in Lithuania, can win back its bank licence after it was previously revoked by the Bank of Lithuania.

ABC Projektai, formerly called Bruc Bond UAB, had its banking licence revoked in April 2020 for allegedly holding customer funds longer than necessary for online transactions.

The Supreme Administrative Court of Lithuania (SACL) accepted the appeal. The ruling recognised ABC Projektai’s efforts to abide by regulations and compliance, a statement from ABC Projektai said late last week.

The fintech firm can operate under a full banking licence as of 1 July 2024.

The case is perhaps unusual in showing how a legal ruling by a regulator to ban a financial business can be later overturned.

“The court, aligning with the findings of the Court of Justice of the European Union (CJEU), determined that the main allegation against ABC Projektai regarding exceeding the boundaries of its payment institution licence was invalid,” a statement from the firm said. 

"This complete vindication is a significant relief as it validates our operational practices and unfailing commitment to compliance with regulatory standards,” a spokesperson for ABC Projektai said in a statement.

The initial penalty of permanent revocation was found by the court to be excessively harsh and disproportionate given the circumstances. The court also confirmed that there was no evidence of intentional wrongdoing by ABC Projektai.

ABC Projektai said it received support from other EU member states, including Germany, Poland, and the Czech Republic as well as the European Commission.