Almost two weeks ago, the Bank of Lithuania (BL) took a sensational step in revoking the license of Bruc Bond UAB. The reason for this was that the BL, after intensive examination, found serious and systematic violations of the regulatory provisions. The supervisory authority also stated that the Bruc Bond had filed false information. On the Bruc Bond website, the public was informed about the revocation of the license. The decision would have been surprising and would not be understood, the statement said.
Interestingly, the 100% Singapore subsidiary Bruc Bond Pte Ltd holds a Major Payment Institution (MPI) license no. PS20200075, issued by the Monetary Authority of Singapore (MAS), under the Payment Services Act (No. 2 of 2019).
The beneficial owners of Bruc Bond are the Israelis Eyal Nachum and Tamir Zoltovski. They are also the beneficial owners of International Fintech UAB, which is also regulated by the BL. Bruc Bond‘s social channels such as LinkedIn, Facebook, or Twitter did not report the withdrawal of the license. There the FinTech has remained rather silent since then. A strange strategy considering that FinTech guru Eyal Nachum was quoted in dozens of press articles in the weeks before the license was revoked. But who knows?
According to BL, the supervisory authority would take a very close look at the management of the regulated Fintechs and thus also examine International Fintech. The extent to which the revocation of the parent company’s license in Lithuania will have consequences for the Singapore subsidiary and MAS remains to be seen.