PayrNet (Railsr subsidiary)

In 2022, the Bank of Lithuania took enforcement action against PayrNet, a subsidiary of British BaaS provider Railsr. The regulator found that PayrNet had 'grossly and systematically' violated anti-money laundering rules. Restrictions were imposed on the company's operations, and Grant Thornton Baltic was hired to monitor mandatory AML improvements at PayrNet. The action was part of a broader pattern of European regulators cracking down on BaaS providers for inadequate financial crime controls. The enforcement highlighted risks for BaaS platforms operating across multiple European jurisdictions with varying supervisory standards.

Verified from source: The Bank of Lithuania imposed restrictions on PayrNet, the local subsidiary of Railsr, after finding the company had 'grossly and systematically' violated AML rules. The regulator hired auditors Grant Thornton Baltic to monitor mandatory AML improvements at PayrNet, which operates as a licensed EMI in Lithuania.