UAB PayRNet has been told to return funds to clients, while the central bank is set to initiate bankruptcy proceedings against the firm.

Railsr’s European payments unit, PayRNet secured an electronic money institution licence from the Bank of Lithuania in 2020, enabling to operate across the EU. Last year, it came fifth among Lithuania’s electronic money and payment institutions, with €7.5 billion in turnover.

But, in February, the central bank stopped the Railsr unit from taking on new clients amidst an investigation into concerns of money laundering and terrorist financing law violations.

The investigation has found “gross, systematic and multiple violations” of laws, prompting the decision to revoke RayRNet’s licence.

In March, Railsr was saved from collapse after agreeing a sale to a consortium of investors.

Just a year ago, the firm was looking for investment at a $1 billion valuation but had been looking for a buyer for several months as it faced up to the economic downturn, with a possible deal with African payments technology unicorn Flutterwave falling through.

The rescue deal has seen Railsr continue to trade under a new entity, Embedded Finance, but this does not include the Lithuanian business.