Payeer Fined €9.3 Million for Sanctions Evasion

Lithuania has imposed a substantial €9.3 million （$10.07 million） fine on local cryptocurrency firm Payeer for violating international sanctions and AML regulations.

Points

• Lithuania fines Payeer €9.3 million for sanctions violations.
• Violations include transactions with sanctioned entities.
• Significant revenue and client base involved.
• Historical context of AML fines and license revocation.
• Ongoing regulatory scrutiny in the region.

Lithuania has taken a firm stance against sanctions evasion, imposing a substantial €9.3 million （$10.07 million） fine on local cryptocurrency firm Payeer. This penalty, reported by Reuters on Wednesday, highlights the

country’s ongoing efforts to enforce strict compliance with international sanctions and anti-money laundering （AML） regulations.

FNTT Imposes Significant Penalty

The Financial Crime Investigation Service （FNTT） imposed this penalty after discovering that Payeer facilitated transactions involving sanctioned entities. Payeer allowed customers to transfer money to sanctioned banks, violating international sanctions.

Majority of Clients Based in Russia

Payeer, which began operations in January 2023, quickly amassed a substantial client base, primarily from Russia. The FNTT noted that the company’s rapid growth and significant revenue, exceeding 164 million euros （$177.4 million）, drew increased regulatory scrutiny.

Services Provided to Sanctioned Entities

The FNTT investigation revealed that Payeer provided services to entities sanctioned by the European Union, facilitating transactions that violated international sanctions. The firm’s actions were considered severe breaches of AML regulations.

Historical Context of AML Fines

This fine is part of a broader regional crackdown on entities involved in sanctions evasion. Payeer’s operations in Lithuania followed the revocation of a similar license in Estonia for another company operating under the same name. The Estonian authorities’ move further illustrates the regional commitment to combating financial crimes and enforcing AML regulations.

License Revocation in Estonia

Before establishing operations in Lithuania, Payeer’s license was revoked in Estonia due to similar violations. This revocation underscored the persistent regulatory challenges Payeer faced in adhering to international compliance standards.

US Treasury Blacklists Entities

The actions against Payeer align with global efforts to combat financial crimes. The US Treasury has also blacklisted entities involved in sanctions evasion, reflecting a coordinated international approach to enforcing compliance and maintaining financial integrity.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

”`