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UK regulator probing payments firm over suspected anti-money laundering failings - Finance news and analysis from Global Banking & Finance Review
Finance

UK regulator probing payments firm over suspected anti-money laundering failings

Published by Global Banking & Finance Review

Posted on September 17, 2026

1 min read

· Last updated: September 17, 2026

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UK Regulator Probes Euro Exchange Securities Over Money Laundering Failings

FCA Investigation into Euro Exchange Securities UK Ltd

Background of the Investigation

Sept 17 (Reuters) - The British financial regulator on Thursday said it had opened an investigation into Euro Exchange Securities UK Ltd (EES) over suspected failings in its anti-money laundering processes, including alleged shortcomings in assessing and managing risks.

Closure of EES by the Financial Conduct Authority

The Financial Conduct Authority shuttered EES, the London arm of an electronic money and payments firm with U.S. and Spanish businesses, in June this year.

Company Response

EES declined to comment on the report.

Details of the Alleged Failings

Inadequate Controls and Procedures

The regulator said the company may also have failed to establish adequate controls and procedures to mitigate those risks, including ongoing monitoring, governance, record-keeping and reporting mechanisms.

Period Under Review

According to the regulator, the suspected failings relate to the February 2020 to June 2026 period. The FCA said it had not reached any conclusions on whether the firm had breached any regulatory requirements.

Reporting and Editorial Information

(Reporting by Ankita Bora and Megha Kumari in Bengaluru; Editing by Janane Venkatraman)

Key Takeaways

  • The FCA began its probe on September 17, 2026, into potential violations of the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, focusing on risk assessments, policies, controls, monitoring and record‑keeping from Feb 2020 to Jun 2026 (fca.org.uk).
  • EES was required to cease regulated activities in early June 2026, with interim managers and later special administrators appointed by the High Court due to systemic deficiencies in its financial crime framework and safeguarding operations (fca.org.uk).
  • This investigation follows EES’s shutdown amid serious financial crime risks, with the FCA making no final determination yet on regulatory breaches (fca.org.uk).

References

Frequently Asked Questions

Who is being investigated by the UK financial regulator?
Euro Exchange Securities UK Ltd, the London arm of an electronic money and payments firm, is under investigation by the Financial Conduct Authority.
What is the reason for the FCA investigation?
The FCA is investigating suspected failings in EES's anti-money laundering processes, including risk management, governance, and record-keeping.
When was Euro Exchange Securities UK Ltd shuttered?
The FCA shut down Euro Exchange Securities UK Ltd in June this year.
What period do the suspected failings cover?
The suspected anti-money laundering failings relate to the period from February 2020 to June 2026.
Has the FCA concluded if EES breached regulatory requirements?
The FCA has not yet determined whether Euro Exchange Securities UK Ltd breached any regulatory requirements.

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