Lithuanian regulator fines crypto platform Payeer for violating sanctions and AML norms

What’s new? The Lithuanian Financial Crime Investigation Service (FNTT) has fined crypto payment system Payeer 9,3 million EUR for violating international sanctions and the AML law. Officials specify that the fine amount was a record for the regulator.

Press release

What else is known? The fine amounted to 8,23 million EUR for violating the sanctions, and another 1,06 million EUR Payeer was obliged to pay for violating AML norms. Such a high fine was imposed due to the fact that the company, according to officials, refused to cooperate and did not provide explanations in the investigation.

It is clarified that the investigation against Payeer, which qualifies as a virtual asset service provider (VASP), began in 2023.

Binance to pay $2,3 million fine for multiple violations of AML regulations in India

The Exchange re-entered the local market as a legal entity with registration with the Financial Intelligence Unit

Read more

The company registered in Lithuania back on October 20, 2022, but actually started operations on January 17, 2023, when the branch registered in Estonia was stripped of its VASP license.

It is specified that the platform allowed clients from Russia to make transactions in rubles, transferring funds from the accounts of banks under EU sanctions. Also, clients from Russia had access to the services of creating a crypto wallet, storing funds, and account management.

Lithuania will introduce licensing of crypto companies in 2025

Failed firms will be forced to leave the local market

Read more

It is specified that VASP is obliged to carry out customer identification (KYC) to ensure that services are not provided to persons on the sanctions lists. While Payeer, according to the regulator’s representatives, deliberately avoided introducing KYC procedures in order not to lose a substantial part of its revenue.

In addition, the company did not notify the FNTT of transactions over 15 000 EUR, as required by AML legislation.

Officials found that Payeer violated the sanctions for more than a year and a half. During this period, it served at least 213 000 customers and earned over 164 million EUR. It is reported that the company has the opportunity to appeal the decision of the FNTT.

In May, it became known that the US Attorney’s Office is investigating violations of AML laws by the company Block of Twitter founder Jack Dorsey.