Regulatory Scrutiny Threatens FinTech Growth: Ex-Regulators Raise $1M to Help Comply

AMLYSISa leading RegTech firm specializing in anti-financial crime solutions for FinTechs, neo-banks and crypto businesses has successfully closed a $1 million pre-seed investment round.

The round was led by Practica Capital, with participation from the Firstpick accelerator and the venture capital fund. The funding will be used to scale AMLYZE’s Software-as-a-Service (SaaS) business, facilitate international expansion and introduce advanced features to its core product offering. These enhancements will enable AMLYZE to offer a comprehensive suite of integrated compliance services to its clients.

With a current customer base primarily located in the Baltic States and the UK, AMLYZE is experiencing an increase in demand for transaction monitoring, risk assessment and case investigation solutions. The global scale of economic crime, estimated by the United Nations Office on Drugs and Crime (UNODC) to amount to 2% to 5% of annual global GDP (€715 billion to €1.87 trillion), requires innovative solutions to combat these the challenges. Furthermore, increasing regulatory scrutiny worldwide, driven by money laundering, terrorist financing, cyber security risks and geopolitical tensions, has further emphasized the importance of anti-financial crime and sanctions compliance.

Gabrielius Bilkštys, CEO and co-founder of AMLYZE, stated: “Since our mission is to help the world overcome financial crime, we have assembled a core team consisting of experienced IT and anti-financial crime experts, as well as former regulators and supervisors with background in central banking and law enforcement. We consider ourselves industry experts who have an insider’s perspective on the sector, enabling us to help financial institutions meet escalating regulatory requirements and improve their compliance effectiveness.”

Practica Capital, one of the leading venture capital companies in the Baltics, expressed its support for AMLYZE’s mission.

“Given the significant knowledge and experience that has been accumulated across all levels of the FinTech ecosystem in Lithuania over the past decade, it comes as no surprise that a company like this has emerged here. AMLYZE, which gathers a outstanding core team on a clear mission, has solid grounding and potential to bring category-defining products to the large and growing market,” commented Donatas Keras, founder of Practica Capital.

The pre-seed round also saw participation from the Lithuanian accelerator, FIRSTPICK, which has been an early supporter of AMLYZE since its inception.

Marijus Andrijauskas, partner of FIRSTPICK, said: “The increase in demand for AMLYZE’s anti-financial crime solutions comes as no surprise given the increasing regulatory scrutiny worldwide, which threatens the growth of the FinTech industry. We at FIRSTPICK are proud to support AMLYZE’s mission to fight financial crime and help FinTechs comply with increasing regulations. With their expert team and comprehensive suite of compliance services, AMLYZE is well positioned to drive innovation in the industry and streamline compliance processes for its clients.”