The Bank of Lithuania has revoked the license of UAB PayRNet, a former subsidiary of Railsr, due to serious violations of AML and payments laws. The central bank has instructed PayRNet to return funds to its clients, and bankruptcy proceedings will be initiated against the company.
Facts
- UAB PayRNet, a former subsidiary of Railsr, has had its license revoked by the Bank of Lithuania over “serious violations” of AML and payments laws.
- PayRNet is required to return funds to its clients, and bankruptcy proceedings will be initiated against the company.
- Railsr’s European payments unit, PayRNet, held an electronic money institution license from the Bank of Lithuania, allowing it to operate across the EU.
- The central bank stopped PayRNet from taking on new clients in February due to an investigation into concerns of money laundering and terrorist financing law violations.
- The investigation revealed “gross, systematic and multiple violations” of laws, leading to the revocation of PayRNet’s license.
- In 2020, PayRNet ranked fifth among Lithuania’s electronic money and payment institutions, with a turnover of €7.5 billion.
- Railsr was saved from collapse in March after a sale to a consortium of investors. The company now operates as Embedded Finance, but this does not include the Lithuanian business.
