Key Takeaways:
- The Lithuanian FNTT fined Payeer €9.29 million for breaching AML regulations and transferring funds to sanctioned banks.
- Payeer failed to verify customer identities and allowed transactions through EU-sanctioned Russian banks for over 1.5 years.
- The fine includes €8.23 million for sanctions violations and €1.06 million for AML breaches, with Payeer retaining the right to appeal.
The Lithuanian Financial Crime Investigation Service (FNTT) fined Payeer, a crypto payment company, 9.29 million euros ($10 million) for breaching Anti-Money Laundering regulations and conducting transfers to sanctioned banks.
This is the largest fine on a virtual asset service provider in Lithuania.
Lithuania fines crypto company Payeer a record €9.3 million for sanctions and money laundering violations involving Russian clients https://t.co/T5jrf88aGx
— Bloomberg Crypto (@crypto) July 10, 2024
Payeer, offering services like crypto exchange and e-commerce payments, moved operations to Lithuania after losing its Estonian license.
The FNTT found that Payeer failed to verify customer identities and allowed transactions in Russian rubles through EU-sanctioned Russian banks for over 1.5 years.
During this period, Payeer had 213,000 customers and generated over 164 million euros in revenue.
Lithuania fines cryptocurrency firm Payeer €9.3M ($10.1M) for conducting business with a sanctioned Russian client and violating money laundering regulations, reports Bloomberg 💸⚖️ #BitcoinWorld
— BitcoinWorld Media (@ItsBitcoinWorld) July 10, 2024
The fines include 8.23 million euros for international sanctions violations and 1.06 million euros for Anti-Money Laundering law breaches.
Despite FNTT’s requests to halt these transactions, Payeer did not cooperate. Payeer has the right to appeal.
This case underscores increasing regulatory actions against non-compliant crypto exchanges.
About The Author
Victor Fawole, a seasoned Web3 content creator and social media influencer, excels in bringing the pulse of the crypto world to our readers.
With a keen eye for emerging trends and a talent for engaging storytelling, Victor’s articles offer a fresh perspective on the ever-evolving digital currency landscape.
Check Victor out on:
