Overview of the FNTT Fine Imposed on Payeer
Latvia’s Financial Crime Investigation Service (FNTT) has issued a substantial $10 million fine to Payeer, a crypto payment service provider, for violating EU sanctions by enabling access to its crypto wallet services for individuals and businesses in Russia.
Payeer’s Violations and Consequences
Payeer allowed Russian customers to purchase cryptocurrency using bank transfers and rubles, funneling funds through banks subject to EU sanctions. This non-compliance persisted for over a year and a half, resulting in the record fine. Additionally, Payeer faces a separate $1.15 million penalty for breaching Latvian anti-money laundering (AML) and counter-terrorism financing protocols.
Broader EU Crackdown on Crypto Firms
The EU’s efforts to curb sanctions evasion by crypto entities have intensified with measures prohibiting European crypto wallets from serving Russians. This crackdown aims to disrupt financial support for Russia’s military actions, including through stricter regulations and enhanced due diligence on transactions above €1,000.
