EN ECB-PUBLIC  
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 16 April 2014 
on currency exchange operators 
(CON/2014/27) 
 
Introduction and legal basis 
On 14 March 2014, the European Central Bank (ECB) re ceived a request from the Lithuanian Ministry of 
Finance for an opinion on a draft law on currency excha nge operators (hereinafter the ‘draft law’) and on 
draft amendments to the law on Lietuvos bankas (hereina fter the ‘draft amending law’) (jointly the ‘draft 
laws’). 
The ECB’s competence to deliver an  opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the first, second and third indents of Article 2(1) of Council 
Decision 98/415/EC1, as the draft laws relate to currency ma tters, means of payment and Lietuvos bankas. 
In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central 
Bank, the Governing Council has adopted this opinion. 
 1. Purpose of the draft laws 
1.1 The draft law aims to simplify the regulati on of entities providing currency exchange services in 
Lithuania. It establishes a separate legal framework  for the provision of currency exchange services 
and introduces a new entity into the Lithuanian fi nancial market, i.e. the ‘currency exchange 
operator’. 
 At present, currency exchange services in Lit huania can be provided by: (1) credit institutions 
having a licence to provide such services; (2) other payment service providers and e-money 
institutions (when related to payment services or issue of e-money); and (3) financial brokerage 
firms (when related to investment services). 
1.2  The draft law outlines the procedure for inclusi on in the list of currency exchange operators, the 
procedure for commencement and termination of cu rrency exchange activities, and the supervision 
of such activities. It also lays down the requi rements applicable to currency exchange offices. 
1.3 The draft law requires that a currency exchange office is equipped so as to ensure, inter alia, the 
proper protection of cash and the fulfilment of ob ligations laid down in legal acts regulating cash 
                                                 
1 Council Decision 98/415/EC of 29 June 1998 on the consultatio n of the European Central Bank by national authorities 
regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 
ECB-PUBLIC  
2 management. Such requirements, as well as the pr ocedure for their implementation, are to be 
further specified by the supervisory authority. 
1.4 The draft laws provide for Lietuvos bankas to  be designated as the supervisory authority for 
currency exchange operators. 
 2. Specific comments 2.1 As regards the proper protection of cash as referred to in Article 8 of the draft law, Lietuvos bankas 
is entrusted
2 with setting requirements for credit and payment institutions and other economic 
entities engaged in the collecting, handling and recycling of banknotes and coins, as regards the 
verification of the authenticity of Lithuanian  litas banknotes and coins and of the euro, and the 
detection of counterfeit money. Lietuvos bankas also  monitors the fulfilment of such requirements. 
Lietuvos bankas is accordingly responsible for en suring that entities engaged in the processing and 
distribution to the public of euro notes and coins discharge their obligations under Article 6(1) of 
Council Regulation (EC) No 1338/20013. The ECB therefore recommends that the draft law is 
clarified to ensure that the protection of  “cash” includes the protection of the euro.  
2.2 Furthermore, as Lietuvos bankas will be entruste d with new supervisory t asks, requiring additional 
human and financial resources, the ECB emphasis es that any involvement of Lietuvos bankas 
should be fully compatible with its institutional and financial independence, in order to safeguard 
the proper performance of its task s under the Treaty and the Statute of the European System of 
Central Banks and of the European Central Bank.  The principle of central bank independence 
requires, inter alia, that Member States do not put  their national central banks in a position where 
they have insufficient financial resources and inadeq uate net equity to carry out their tasks related 
to the European System of Central Banks or the Eurosystem4. Accordingly, the ECB expects that 
Lietuvos bankas will have sufficient human a nd financial resources to perform its new 
tasks5. 
 
This opinion will be published on the ECB’s website.   
                                                 
2 Article 6(3) of the Law on Lietuvos bankas. This provision was the subject of  Opinion CON/2011/46. All ECB opinions 
are published on the ECB websit e at: http://www.ecb.europa.eu 
3  Council Regulation (EC) No 1338/2001 of 28 June 2001 laying dow n measures necessary for the protection of the euro 
against counterfeiting (OJ L 181, 4.7.2001, p. 6). See, fu rther, Council Regulation (EC) No 1339/2001 of 28 June 2001 
extending the effects of Regulation (EC) No 1338/2001 laying down measures necessary for the protection of the euro 
against counterfeiting to those Member States which have  not adopted the euro as th eir single currency (OJ L 181, 
4.7.2001, p. 11). 
4 See Opinion CON/2012/63, paragraph 6.1.  
5 See Opinion CON/2007/38, paragraph 2.3. 
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3  
Done at Frankfurt am Main, 16 April 2014. 
 
[signed]  
 
The President of the ECB 
Mario DRAGHI