Updated Review: Lithuanian FCIS Findings Confirm FinTelegram’s Reports on Payeer’s Russian Connections and Money Laundering!

Ben
Thu, 11 Jul 2024 14:36:16 +0000
Compliance, Money Laundering, Reviews & Ratings, Sanctions, ticker, Akkord Welt, Anton Stjopotskin, Artem Burdasov, Ekaterina Olegovna Gorshkova, Elene Kulbikova, Fincana, Fingate, Konstantin Buryachenko, Kosolapova Evgenia Nikolaevna, Liubov Svezhentseva, Lyubov Svezhentseva, Mayzus Financial Services, Paycorp, Payeer, Payeer Rus, Payment Solutions, PB24 Corp, Perfect Money, Runwill, Sergey Mayzus, Toomas Taro, Volet, Worldwide System

As reported previously, the Lithuanian Financial Crime Investigation Service (FCIS) has imposed a record fine on the payment processor Payeer, totaling nearly €9.3 million, for significant breaches of international sanctions and anti-money laundering (AML) regulations. This development corroborates FinTelegram’s previous investigations into Payeer‘s Russian connections and its role in laundering money for scammers, further solidifying FinTelegram’s reputation as a leading financial intelligence provider.

The FCIS Findings

Payeer UAB, operating from Lithuania, was found to be in breach of international sanctions laws for over 1.5 years. During this period, the company serviced at least 213,000 customers, generating revenue exceeding €164 million. The FCIS’s investigation revealed that Payeer facilitated transactions for Russian customers, allowing them to conduct business with sanctioned Russian banks and entities. Payeer was found to have deliberately circumvented legal requirements to maximize its revenue. The company failed to properly determine and verify the identities of its clients, a fundamental aspect of AML compliance. By neglecting these substantive requirements, Payeer effectively opened the door for illicit transactions and money laundering activities, undermining the integrity of the financial system.

Frequent changes in legal forms and jurisdictions

Since its inception in 2012, Payeer has frequently changed its legal personality and jurisdiction in recent years. We have summarized the main changes to the legal entities and jurisdictions in the table below:

Year | Legal Entities | Jurisdictions | Related Individuals
2012 | Payeer Rus LLC | Moscow, Russia | Evgenia Nikolaevna Kosolapova
2013 | Payeer Rus LLC (ООО “ПЭЙЕЕР РУС”), PB24 Corp | Moscow, Russia; Panama |

2014

Akkord Welt LP,
Payeer LLC,
Payment Solutions Ltd,
Mayzus Financial Services Ltd

Scotland; British Virgin Islands; UK

Elena Kulbikova
Sergey Mayzus

2015

Payeer LLC (Georgia),
Payeer LLC (Russia),
Akkord Welt LP

Georgia; Russia; Scotland

Elena Kulbikova
Konstantin Buryachenko

2018 | Runwill Sp. z o. o. | Poland |
2019 | Paycorp Limited | Vanuatu |

2020

Fincana OÜ
Paycorp Limited

Estonia; Vanuatu

2021

Payeer OÜ
Paycorp Limited

Estonia; Vanuatu

Lyubov Svezhentseva
Ekaterina Olegovna Gorshkova
Anton Stjopotškin
Dmitrii Bondarenko
Toomas Taro

2023 | Payeer UAB | Lithuania | Artem Burdasov
2024 | Payeer E.A.S | Paraguay |

Compliance Check

The company held a crypto license from the Estonian FIU until the end of 2022 but voluntarily returned this license when the Estonian FIU threatened to revoke it. In early 2023, Payeer then officially moved to Lithuania and registered there as a crypto service provider via Payeer UAB.

The move to Paraguay then took place sometime in Q2 2024. Payeer‘s most recent user agreement requires users to accept Payeer E.A.S. in Paraguay as a legal entity and at the same time provide a correspondence address in London. This address belongs to MYCO Works, which operates a co-working space there.

It is noteworthy that the Lithuanian company Payeer UAB is missing from the user agreement, suggesting that Payeer has moved its operations to Paraguay in anticipation of FCIS sanctions.

It remains unclear what, if any, regulatory approvals Payeer has to operate in Europe, North America and other regions. The company appears to be operating without a valid license or permit, raising significant concerns about compliance with local and international regulations.

Our review on July 11, 2024 found that EU citizens from various countries were able to register with Payeer without any issues. Before the KYC check was completed, we could have deposited $15,000 via Volet or the Russian Perfect Money. In addition, unlimited deposits with cryptocurrencies were possible before the KYC check. These findings show that Payeer‘s KYC procedures remain inadequate, justifying the penalties imposed by the FCIS.

Due to the significant fine imposed by FCIS, unclear regulatory status and continued AML/CFT violations, the cyberfincence rating agency PayRate42 maintained its Red Compliance and Red Risk Rating for Payeer. Users are advised to exercise caution and be aware of the potential risks associated with the use of Payeer services.

Go to the Payeer profile on PayRate42.

Key data Payeer

Trading name | Payeer

Business activity

high-risk payment processor, crypto exchange,
merchant service prodiver

Domain

https://payeer.com
https://payeer.cc

Legal entities

Payeer OÜ (Estonia)
Payeer UAB (Lithuania)
PayCorp Limited (Vanuatu)
Fincana OÜ (Estonia)
Runwill Sp. z o. o. (Poland)
PAYEER LLC (Georgia)
FINGATE LLC (Georgia)
AKKORD WELT LP (Scotland)
Worldwide System K/S (Denmark)
Mayzus Financial Services Ltd (UK)
PAYMENT SOLUTIONS LTD (BVI)
PAYEER RUS LLC (Russia)
PB24 CORP (Panama)

Related individuals

Anton Stjopotškin, Estonia (UBO)
Joseph Olatilewa Jaiyeola, Estonia
Ekaterina Olegovna Gorshkova, Russia
Liubov Svezhentseva, Russia
Kosolapova Evgenia Nikolaevna, Russia
Elena Kulbikova, Russia
Sergey Mayzus, Russia
Dmitri Allikas (old)
Stanislav Lattu (old)

Jurisdictions

Estonia, Vanuatu, Russia,
BVI, Poland, Panama, Georgia,
Denmark

Regulators

FIU Estonia renounced in Jan 2023
FCIS (Financial Crime Investigation Service) Lithuania
VFSC

Trustpilot rating | 4.8-star rating with an “Excellent” trust level
PayRate42 rating | Red Compliance (Payeer profile)

Facilitated schemes

PO Trade, Pocket Option,
Capital Letter, FXTradePremiums, Deal Trade
Optimus Markets, Spintop Capital, SuperForex
and counting

Whistleblower Request

We would like to know more about the Payeer Group, its beneficial owners and partners and activities. If you have any relevant information, please let us know via our whistleblowing system, Whistle42.