Crypto Firm Payeer Slammed With £9.3 Million For Violations
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Crypto firm Payeer has been slammed with a hefty fine of £9.3 million by the Lithuanian financial authority (FNTT) for money laundering failures and Russia-related sanction breaches.
Payeer gave Russian customers the platform to perform transactions in Russian roubles through Russian banks sanctioned by the EU.
The regulator revealed that the platform allowed Russian firms and individuals to carry out crypto storage services, account management, and open crypto wallets for transactions. Payeer had about 213 customers over 18 months. According to the watchdog, the firm’s revenue surged to over £164 million during this period.
Payeer Deliberately Failed To Check Customers’ Identities
FNTT stated that the platform needed to properly determine and check its customers’ identities because it was afraid not to lose a significant part of its income.
Payeer was initially operating in Estonia. But after revoking its license, it decided to set up in Lithuania. The company will now pay £1.1 million for AML violations and £8.2 for the sanctions violations.
According to the complaint, Payeer allowed sanctioned accounts to remain active because they needed to implement the Know Your Customers measures. Additionally, the firm did not report the issues to FNNT. The regulator’s investigation shows several lapses in control procedures and internal policies.
FNTT stated that the company’s violations were deliberate because they were used as a strategy to keep its customers and gain massive profits.
Payeer Failed To Cooperate During The Investigation
FNTT reiterated that Payeer failed to cooperate with the investigators and did not provide the required information to speed up the process. The watchdog added that the platform’s attitude disrespects legal proceedings.
As a result, the regulator slammed Payeer with a hefty fine for various breaches and a poor attitude during the investigation. The fine is the highest ever imposed by FNTT in such a case.
The sanction comes when the rate of regulatory breaches increases in the crypto and finance sectors. A recent report revealed more than 98,000 reported cases of regulatory violations and similar financial matters last year.
Payeer has also been called out several times for enabling Russian investors and traders to bypass the sanctions placed by the EU for Russia’s invasion of Ukraine. Some European media units reported last year that some video tutorials online show how people can bypass these sanctions via Payeer.
