Tag: Matthew Grossman

In a special report published by Rachel Wolcott of Thomson Reuters Regulatory Intelligence, significant concerns have been raised regarding Payrnet Ltd, an FCA-regulated e-money institution (EMI) and a subsidiary of the embedded finance platform Railsr. The report highlights serious client money safeguarding and compliance failures tied to the bankrupt Lithuanian EMI, UAB Payrnet, then part of the bankrupt Railsbank Technology group.

In June 2023, the Bank of Lithuania revoked the license of the collapsed e-money institution Payrnet and initiated bankruptcy procedures. Now other regulators are also warning about the collapsed payment processor. Today, for example, the Austrian FMA, which explained that the license was revoked for serious violations related to money laundering prevention and terrorist financing, was identified. You should get your money before its too late.

Railsr Group, with its regulated PayrNet entities, has a massive problem. Last week, the Bank of Lithuania revoked its e-Money Institution (EMI) license. The regulator also announced that it would file for insolvency and file a complaint with law enforcement agencies for possible criminal violations. According to its website, the PayrNet entity regulated by the FCA in the UK was also banned from acquiring new distributors or agents.