Luminor continues to operate as usual, and our priority remains on ensuring the continued delivery of our services to customers and maintaining the security of their funds.

We continue to closely monitor the situation to make sure our risk framework is robust and continuously corresponds to the circumstances. We follow all local and international regulations and guidelines and are working closely with respective authorities.

During this period, we urge our customers to be extra careful and only rely on information from legitimate sources of information.

 

Frequently Asked Questions

How is Luminor supporting Ukraine?

We are not taking any fees from payments made to Ukrainian accounts. We will compensate fees for all such payments from 24 February 2022.  

Luminor recommends retail customers to use the charge type option where sender pays all transfer charges (OUR) in cross-border payments to Ukraine. In this case, a beneficiary will receive the payment amount in full.

Also, we will offer support to Ukrainian refugees regarding banking services: faster process for account opening, opening accounts free of charge and issuing free code calculators, among other.

Are the payments still being made to/from Russia and Belarus?

Luminor is suspending outgoing payments to Russia and Belarus from 1 June 2022 and incoming payments from Russia and Belarus from 1 July 2022 in all currencies.
 
We will process all payments submitted before that date in line with sanctions restrictions. Please be aware that in connection with the changes there may be delays in payments on average of 6 weeks or in some cases, even more.

Are we making RUB conversions?

Our customers can exchange RUB currency to EUR using their internet bank during banking hours.

Can customers make RUB payments?

All incoming RUB payments received after 16 March will be rejected and payments returned to sender. Outgoing RUB payments are currently still processed.

Is it possible to make rouble deposits?

In general, customers cannot make deposits in roubles.

What about sanctions?

Russian government’s actions and the entry of Russian troops into Ukrainian territory led to imposition of new sanctions issued by United States of America, United Kingdom and European Union. Luminor is following the sanctions and restrictions in place.

We also encourage our customers to see that their transaction parties are not sanctioned, as sanctions apply to everyone, not only banks. This will support a smoother process of payment order fulfilment by the bank.

Considering the current situation, sanctions regulations and restrictions may rapidly change and have different outcomes, changes in respect to the services provided by Luminor Bank. There is more information about sanctions available on our website. There is more information about sanctions available on our website.

How will the sanctions affect Luminor services?

To make sure that the restrictions are followed, Luminor has to evaluate customers’ transactions. As a result, we may have to hold the customer’s transactions and ask them to provide supporting documents to investigate whether the transaction is related to the sanctions imposed by respective authorities. For that reason, the execution of payments may on occasion be delayed.

Does emergency state situation have any effect on banking services in Lithuania?

No, there is no direct impact on banking services, we continue normal operations.

What about cash availability or other services in extraordinary circumstances?

We continue to operate as usual. We strive to provide customers with convenient access to all necessary banking services including access to ATMs and will inform our customers about changes in the order of their provision through the usual channels. The provision of essential services in exceptional circumstances will be ensured through the coordination of the actions of banks and relevant state institutions.

Has there been any change in cash withdrawal limits?

There has been no change, the usual withdrawal limits apply. We would like to remind our customers to make sure they haven’t reached the regular withdrawal limit of their cards when using ATMs.

How is Luminor Investor impacted?

From 23 February, there are restriction on Luminor Investor platform on trading all asset classes with links to Russian market:

  • If a customer has already positions with any links to Russian market in it is no longer possible to increase position;
  • Russian bonds issued after 14.06.2021. are subject of sanction and customer can’t trade them.10
From 1 March, several trading venues have implemented additional restrictions on selling some Russia related securities. If you have any of them in portfolio your selling order will not be accepted in trading venue.

How are we managing our customers’ investments and pensions at this time?

Please see more info about this here.

What will happen to my assets/deposits in the current situation?

Luminor continues to operate as usual. The assets of bank customers are protected by the Guarantee Fund Act of the Republic of Estonia. Pursuant to the European Union Deposit Insurance Directive depositor protection, customers are reimbursed for deposits with accrued interest in full, but not more than 100,000 euros.
 
Customer securities such as shares, bonds and other financial instruments traded on the Tallinn, Riga, and Vilnius stock exchanges are held in the bank's nominee account in the local Nasdaq CSD. Financial instruments traded on other markets are held by the bank in nominee/omnibus accounts with other banks (e.g. Citi, Euroclear, Luminor Investor).
 
Luminor Bank AS safeguards financial instruments of their customers separately from Bank’s own financial instruments, which means that the customers’ financial instruments are recorded off balance and cannot be used to satisfy claims of creditors of the Bank in case of insolvency. This pertains to both Luminor Investor platform instruments, as well as instruments traded acquired though other investment services (e.g Citi, Euroclear).
 
Luminor Investor platform customers’ cash and financial instruments, as well as financial instruments safeguarded in Financial instrument account are also guaranteed under Guarantee Fund Act of the Republic of Estonia Investor Compensation Scheme. The Scheme ensures that every investor is entitled to reimbursement of 90% of irreversibly lost financial instruments’ value or loss incurred due to failed investment service, yet no more than EUR 20,000.

What to do with my current investments in financial instruments?

If you have investments, we suggest you take the time to review your portfolio and make sure it is sufficiently diversified. Diversification is a key in any investment strategy, and it may prevent your portfolio from significant losses if a particular region or industry suffers losses. 
 
A volatile market environment may not be a good time to sell investments. If you do not need cash urgently, carefully consider your options before making any changes to your portfolio. If you have regular investments, for example into 3rd pension pillar or a globally diversified ETF portfolio, we encourage you to continue paying regular contributions, because it can be a good way to soften the impact of market volatility in the long term. 
 
If you would like more advice on what to do about your savings and investments, please contact a Luminor bank investment specialist.

Can customers use their investments in Luminor Investor platform in some other country?

As always, the disposal of investments takes place based on customer instructions to both delivering and receiving financial institutions.

Are there any changes in Luminor approach to lending, any additional restrictions?

Following all sanctions and restrictions imposed, Luminor continues to operate as usual, including financing our customers. We haven’t implemented any new restrictions to our approach and follow the same principles of responsible lending and our risk appetite as always – assessing each case individually.  

Among other, it means carrying out additional analysis on the implications from the current situation (e.g potential supply chain restrictions, sanction related risks, etc for legal entities or income stability for private individuals).

What about lending overall, should I proceed with my application?

Luminor continues to operate as usual, including financing our customers. We advise to follow the same principles of responsible lending as always – to assess your current financial situation and future outlook. We are happy to discuss this with you.

What should I do if I’m worried about my job outlook? Can I postpone my payments?

As always, we recommend our customers to approach us to discuss the situation as soon as they have any concerns. All cases are individually assessed and we aim to find the most suitable solution in each situation.

What should I do if the seller of real estate is a resident of Russia? Will this property be taken as a pledge by the bank? If the transfer for the property bought should be transferred to Russia, will the seller receive the money?

In general, the payments to and from Russia haven’t been stopped, but there may be delays. Also, it should be confirmed that the recipient is not included in any of the current sanctions lists. We will have more information on such specific situations later in the day. 

What will happen to the lending contracts?

We continue with normal operations. Lending agreements are in force and are to be fulfilled. In case the customer is worried about possible financial difficulties from their side in fulfilling those obligations, we urge them to approach us as soon as possible, so we can find the best solution to the situation.

In case the state should impose any special regulations due to developing circumstances, Luminor will follow those and we will inform our customers about it at the first possibility.

Are there going to be any additional impacts or changes?

Considering the current situation, there may be further changes taking place in some areas. We will keep you informed and provide updates on a regular basis.

What will happen with SWIFT payments?

SWIFT is a worldwide communication network between banks specifically addressing cross border payments. Following the implementation of the decision to remove Russian banks from SWIFT, we will follow those sanctions, so payments will not be executed to specific sanctioned banks.

Processing payments to/from Russia and Belarus may take longer

Please be aware that in connection with the extent and complexity of the sanctions imposed in response to invasion of Ukraine, payment processing to and from Russia and Belarus, as well as some regions of Ukraine, may take considerably longer time than usual. While we are making all efforts to process the transactions as promptly as possible, in some cases the process may take on average of 6 weeks or in some cases, even more. We thank you for your patience and understanding.

What will happen if I initiate a payment to a sanctioned bank?

Payments to sanctioned banks will not be executed by Luminor. Funds will be returned back to your account.

Are there any changes in card services?

Visa and Mastercard have announced that they are suspending all operations in Russia from 9 March at 23.00 Eastern European Time.

What does it mean for the customers?

As a result, cards issued in Russia can no longer be used in other countries and also cards issued in other countries (incl. Luminor cards) cannot be used at merchants in Russia.”our cardholders can't make purchases at Russian e-commerce merchants and physical merchants in Russia.

What about online payments with cards?

Our cardholders can't make purchases at Russian e-commerce merchants and physical merchants in Russia.

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