Tag: PayrNet

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 Today, for example, the Austrian FMA, which explained that the license was revoked for serious violations related to money laundering prevention and terrorist financing, was identified.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.

That's really bad news for the European fintech scene. The Bank of Lithuania (BoL) has revoked the license of PAYRNET, an electronic money institution, due to serious and repeated violations of legal acts. The regulator intends to seek bankruptcy proceedings against PAYRNET and will notify law enforcement authorities. Furthermore, the regulator has restricted PAYRNET's ability to dispose of allocated funds, subject to certain reservations.

The High-risk payment processor MuchBetter recently stopped most provided services. The service disruption came just days after the Bank of Lithuania ordered PayrNet UAB to stop onboarding new clients on allegations of “severe and systematic violations of the Law on Prevention of Money Laundering and Terrorist Financing.”The regulator also ordered to stop the provision of services through the company's agent UAB MIR Lithuania d/b/a MuchBetter, which may have caused the service disruption.