ePayments shutters as FCA Anti-Money Laundering regulations tighten

The digital funds supplier ePayments is placing the ultimate nail within the coffin of its operations. ePayments issued e-mail notices to purchasers on Tuesday, stating that it’s formally closing its enterprise operations in mild of native laws.

The monetary companies supplier was one of many largest digital cost suppliers in the UK. Nonetheless, nearly three years in the past, it was ordered to stop operations by the U.Okay.’s Monetary Conduct Authority (FCA) as a consequence of alleged weaknesses in its “monetary crime controls.”

On the time of the preliminary suspension, it was estimated that ePayments held $149 million, or 127.5 million Nice British kilos, in buyer funds, which had been quickly inaccessible.

After years of restructuring efforts, the corporate attributes the ultimate closure to “extraordinarily difficult and unprecedented international financial circumstances,” years of halted operations and being unable to satisfactorily meet the FCA’s necessities.

It says funds are secure and encourages former prospects to withdraw funds in eWallets and stand by for refund info. Customers on Twitter responded to the replace with a combination of aid and frustration, with one consumer saying he had funds caught in ePayments since 2020:

Whereas one other tweeted to the corporate that his funds had been nonetheless inaccessible.

This growth comes because the U.Okay.’s monetary regulators have been tightening the reins on the business. The FCA recruited almost 500 new staff during the last yr in accordance with its new three-year technique.

One of many positions stuffed included the newly created director of funds and digital belongings which is able to oversee issues corresponding to e-money, cost and crypto-asset markets. The place was stuffed by former director on the Nationwide Financial Crime Command.

Associated: FCA highlights restricted position as unregistered companies proceed to function

Whereas some regulators within the nation imagine the U.Okay. can not afford to ship blended indicators as to its stance on digital belongings and cost companies, it nonetheless seems to be the case.

The newly appointed finance minister, Kwasi Kwarteng, has not addressed the problem of crypto laws and promoting watchdogs lately cracked down on crypto-related advert content material on Instagram.

Alternatively, the financial secretary made a press release on Sept. 7 by which he stated he needs to make the U.Okay. a crypto hub and best choice for innovators beneath the brand new prime minister.

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