We’re excited to announce that Walletto has turn into a Public Curiosity Entity (PIE) from the first of July 2024.
Following a current legislative change, this standing was granted to entities that play an essential function within the monetary sector because of the scale of their operations.
The Director of Walletto, Roman Baranov says, “With the recent legislative change, Walletto is now classified as a Public Interest Entity. Not every financial organization attains this status, hence, it marks an important milestone for us. While this introduces increased supervision requirements, it underscores our significant impact on the financial services sector in Lithuania. This is a result of 7 years of dedication and hard work. Over the years, we have been actively developing and expanding our client base. We now confidently secure the 7th place among EMIs in Lithuania by payments turnover. While the new legislation implies increased supervision, we view this as an opportunity to reaffirm our commitment to maintaining public trust and ensuring the highest standards of financial integrity. The new status of a Public Interest Entity showcases Walletto’s significance within the financial community.”
Primarily based on the monetary information for FY2022 and FY2023, Walletto exceeded the standards set, and in consequence, was granted a Public Curiosity Entity standing. In line with the publicly out there information revealed by the Financial institution of Lithuania, as of 31 March 2024, Walletto ranks seventh among the many digital cash establishments in Lithuania based mostly on consumer cost turnover.
Edgar Danulevic, CFO of Walletto explains: “Although it is a fresh topic for the sector, currently we expect the financial audit process to be impacted the most by recent legislative changes, as the PIE status would typically imply lower materiality, more rigorous risk assessment by the auditors which would then lead to increased audit scope, and, as a result, more time spent on the engagements by external financial auditors. It should be stressed, that more strict independence, risk assessment, and quality control requirements for auditors of PIE audit engagements justify increased audit costs, however, this will also limit the selection of audit companies that are willing to undertake such projects. We look forward to navigating and adapting to the changes in the regulatory environment as the industry progresses through transformation.”
Amongst different issues, you will need to notice that PIE EMIs working in Lithuania wouldn’t be required to organize monetary statements below the Worldwide Monetary Reporting Requirements (IFRS), thus, reporting framework selection will stay on the discretion of the corporate. Another essential factor to notice is that PIE EMIs have been exempt from the requirement to determine an audit committee, as in comparison with different monetary sectors.
