BitOK Experts Elucidate €9.3 Million Fine Imposed on Payeer

BitOK has delved into the reasons behind the Lithuanian regulator’s record fine of nearly €9.3 million on the payment service Payeer and shared its findings with ForkLog.

The Financial Crime Investigation Service (FNTT) under the Ministry of the Interior cited serious and deliberate violations by the platform of international sanctions and the Law on the Prevention of Money Laundering and Terrorism Financing in its decision.

BitOK’s research revealed that approximately $35 million of Payeer’s turnover ($15 million incoming and $20 million outgoing) was linked to the Russian exchange Garantex, which was added to the SDN list in 2022. This accounted for 2-5% of the service’s processed funds.

Additionally, around $40 million of Payeer’s turnover was connected to online exchangers with beneficiaries from Russia and CIS countries or served clients from this region.

BitOK noted that under Lithuanian law, virtual asset service providers are required to conduct client verification based on the KYC principle and investigate the sources of funds. According to FNTT, the company did not adequately fulfill these requirements.

The agency believes that Payeer also failed to comply with sanction regimes concerning financial institutions and banks listed in Annex XLV of Regulation EC No 833/2014. The platform provided wallet, account, or crypto-asset depository services to Russian citizens, its residents, and organizations registered in the country. Moreover, the company did not submit mandatory reports for VASPs to FNTT.

Commenting on the fine imposed on Payeer, BitOK emphasized that market participants must continuously adapt their AML policies in response to legislative changes.

In March, it was reported that authorities in the US and the UK investigated USDT transfers through Garantex amounting to $20 billion—approximately one-fifth of the stablecoin’s capitalization.