Payeer Under Scrutiny

Per an official notice from the Lithuanian Financial Crime Investigation Service (FNTT), Payeer has "failed to comply with international sanctions."

The unit said that Payeer offered individuals and companies from Russia access to its crypto wallet services. The FNTT explained that Payeer registered as a company in Lithuania on October 20, 2022. But the unit said it " started to carry out operations on January 17, 2023."

Previous Operations in Estonia

A previous iteration of the company was allegedly registered in Estonia. However, the FNTT said this firm "had its license to carry out [crypto exchange] activities revoked."

The unit wrote: "In Lithuania, the company was possibly established to continue Payeer's operations, which are incompatible with international sanctions." The unit claimed that the company had "refused to cooperate" with its probe into its operations.

Latvian Financial Crimes Unit Weighs In

The Latvian Financial Crimes Unit (LFCU) also accused Payeer of failing to abide by sanctions rules and added that Payeer had let Russian customers buy crypto using bank transfers.

The LFCU said customers were allowed to pay in Russian rubles, transferring funds " from banks under EU sanctions" over a year and a half. Further, the unit accused Payeer of violating Latvian anti-money laundering and combating the financing of terrorism protocols.

EU's Crypto Sanctions

In October 2022, the European Union banned crypto wallets whose operators are based in Europe from providing services to Russians. The EU included the measures in its eighth package of sanctions, which led many European crypto providers to block Russian bank accounts.

The union has since followed up with more crypto-related sanctions. Its most recent round of sanctions, unveiled in June this year, was its 14th package.

Fines and Legal Consequences

The FNTT added that the unit issued Payeer a separate fine worth $1.15 million for its alleged violations. The FNTT explained that Payeer failed to perform adequate customer ID checks.

FNTT also said the company had done so "intentionally, not to lose a significant part of its income." The unit concluded that Payeer was legally entitled to appeal its rulings.