Opinion of the European Central Bank of 16 April 2014 on currency exchange operators (CON/2014/27)
Date: 2014-04-16
Institutions: European Central Bank
Subjects: Lithuania, exchange policy, exchange transaction, money, national law

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) received a request from the Lithuanian Ministry of 

Finance for an opinion on a draft law on currency exchange operators (hereinafter the ‘draft law’) and on 

draft amendments to the law on Lietuvos bankas (hereinafter 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 matters, 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 regulation 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  financial  market,  i.e.  the  ‘currency  exchange 

operator’. 

At  present,  currency  exchange  services  in  Lithuania  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  inclusion  in  the  list  of currency  exchange  operators,  the 

procedure for commencement and termination of currency exchange activities, and the supervision 

of such activities. It also lays down the requirements 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 obligations laid down in legal acts regulating cash 

1 

Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national authorities 
regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 

 
 
 
 
 
                                                 
ECB-PUBLIC 

management.  Such  requirements,  as  well  as  the  procedure  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  entrusted2  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 ensuring 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 entrusted with new supervisory tasks, requiring additional 

human  and  financial  resources,  the  ECB  emphasises  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  tasks  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 inadequate 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  and  financial  resources  to  perform  its  new 
tasks5. 

This opinion will be published on the ECB’s website.  

2 

3  

4 
5 

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 website at: http://www.ecb.europa.eu 
Council Regulation (EC) No 1338/2001 of 28 June 2001 laying down measures necessary for the protection of the euro 
against counterfeiting (OJ L 181, 4.7.2001, p. 6). See, further, 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  their  single  currency  (OJ  L  181, 
4.7.2001, p. 11). 
See Opinion CON/2012/63, paragraph 6.1.  
See Opinion CON/2007/38, paragraph 2.3. 

2 

 
 
 
                                                 
ECB-PUBLIC 

Done at Frankfurt am Main, 16 April 2014. 

[signed] 

The President of the ECB 

Mario DRAGHI 

3