Bank of Lithuania revokes AlphaPay license, says payment company is insolvent

The Bank of Lithuania announced on Wednesday that it has revoked the license of AlphaPay, a payment institution owned by a UK-based company and formerly known as NovaPay. The central bank stated that the company has committed multiple regulatory violations and is insolvent. It also intends to seek bankruptcy proceedings against AlphaPay.

According to the Bank of Lithuania, AlphaPay no longer meets licensing requirements related to internal controls, information and communications technology infrastructure, safeguarding customer funds, and minimum capital requirements. "The institution is no longer capable of ensuring safe, reliable and stable operations, posing a threat to the interests of its customers," the central bank said in a statement. The company is now prohibited from providing financial services.

The decision follows supervisory measures taken in April, when the Bank of Lithuania temporarily suspended AlphaPay's operations and restricted access to accounts holding customer funds after finding that the company had failed to adequately safeguard clients' money. The regulator ordered AlphaPay to remedy the violations and provide accurate information about its operations and financial condition, but the company failed to comply.

Additionally, AlphaPay did not submit audited financial statements for last year or a shareholder resolution on the allocation of profit or loss within the required deadlines, the central bank said. According to Lithuania's Centre of Registers, AlphaPay is owned by UK-based European Payment.