As soon as funds are deposited into a traditional bank account, banks may use those funds as part of their lending activities. In the event of a bank failure, deposit protection schemes within the European Union generally cover up to EUR 100,000 per depositor.
In addition, traditional banking systems can sometimes involve long waiting times, complex compliance procedures, and limited customer support availability.
According to Article 7(1) of Directive 2009/110/EC, Electronic Money Institutions (EMIs) are required to safeguard client funds received in exchange for issued electronic money.
Satchel has implemented safeguarding arrangements with the Bank of Lithuania. Client funds are held in segregated accounts, separate from the operational accounts of the EMI. This means that, even in the unlikely event of insolvency, client funds remain protected and cannot be used to satisfy company liabilities.
The safeguarded funds are maintained through the Bank of Lithuania framework, providing a high level of security and regulatory oversight.
EMIs are legally required to keep client funds separated from company funds. Therefore, the bankruptcy of the EMI or of a commercial banking partner should not affect the safeguarded client balances.
AB Advisor is strongly committed to the protection and security of client funds. For this reason, Lithuania has long been considered by many financial professionals as one of the most reliable jurisdictions in Europe for EMI operations, thanks to its strong regulatory environment and central bank supervision.
In some jurisdictions, including parts of the EU and the UK, client funds may occasionally become temporarily restricted due to compliance reviews or banking procedures, potentially creating operational difficulties for businesses. Our objective is to minimize these risks by working within a robust and transparent regulatory framework.
AB Advisor JSV, UAB - Company n. 305431413
Address: Konstitucijos pr. 7, Vilnius, Lithuania