Flutterwave Eyeing Railsr Amidst Regulatory Investigation
As per Lithuania bank’s investigation, a subsidiary of Railsr, a banking sector, may be intentionally and significantly violating regulations related to anti-money swindling activities. A statement from the bank claims that there is a cause and that PayRNet broke the law. The Lithuania bank issued Railsr’s payments division, PayRNet, an electronic cash institution license in 2020, allowing it to conduct business within the European Union.
The bank, however, has recently obtained an order in the court mandating that PayRNet temporarily cease accepting new customers. The statement orders PayRNet not to create smooth relationships with fresh clients and intermediaries by distributing or restoring digital payment of this organization. Furthermore, it orders not to proceed until a check is conducted and the Lithuania bank makes a decision regarding the suspected violation. According to a Railsr representative quoted in The Telegraph, the company offboarded users who did not fulfill the required standards because the probe needs to be more forward looking.
The company also states that it is appealing the notification because the Lithuania Bank has only achieved a temporary review. It has been speculated that Nigerian payments firm Flutterwave is interested in purchasing Railsr. This action is being taken as a result of the company’s need to adapt to the current economic climate. It had been seeking investment at one billion dollars of valuation a year ago and it got funding at a significantly reduced $250 million valuation.
Visit World Fintech News for the latest information and analysis on the financial sector and the fintech industry.