The Bank of Lithuania has revoked the license of UK-owned payment institution AlphaPay, saying the company committed multiple regulatory violations and is insolvent.
The central bank said Wednesday it also plans to seek bankruptcy proceedings against the company, formerly known as NovaPay.
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, adding that the company is no longer permitted to provide 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.
