French paytech Lemonway is facing operational restrictions in Italy following a directive from Banca d’Italia. The Italian central bank has identified “certain limitations” that the payment service provider must address to continue its business activities in the country. This regulatory move underscores the increasing scrutiny on financial technology companies operating across borders.
Lemonway, known for its expertise in payment solutions and account management for marketplaces, faced regulatory hurdles after Banca d’Italia reviewed its compliance with local financial regulations. The central bank’s decision reflects Italy’s stringent approach to ensuring that all payment service providers adhere to national and European Union financial regulations.
The specific limitations imposed by Banca d’Italia are not fully disclosed but are believed to pertain to aspects of Lemonway’s operational framework and its adherence to anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. The restrictions are part of a broader regulatory trend aimed at tightening controls over fintech operations to enhance financial security and consumer protection.
Lemonway has expressed its commitment to resolving the issues outlined by the Italian regulator and is working closely with Banca d’Italia to address the concerns. The company is confident that it will be able to comply with the necessary requirements and resume its full range of services in Italy.
The situation highlights the challenges faced by international fintech companies in navigating diverse regulatory environments. As Lemonway adjusts to these new constraints, it will be crucial for the company to align its operations with the regulatory expectations of Banca d’Italia to maintain its position in the Italian market.