FCA Closes Euro Exchange Securities After Money Laundering Concerns Raised
Regulatory Action and Court Approval
LONDON, June 11 (Reuters) - Britain's Financial Conduct Authority succeeded in shuttering Euro Exchange Securities on Thursday after London's High Court approved the regulator's application to appoint administrators for the payments firm.
Impact on Euro Exchange Securities and Clients
Euro Exchange Securities UK Ltd, the London arm of an electronic money and payments firm with U.S. and Spanish businesses, now has to ensure that client money is returned as quickly as possible, the FCA said.
Appointment of Special Administrators
Joint special administrators Duncan Perring and James Bennett of Teneo Financial Advisory, who were provisionally appointed last week and have now had their positions confirmed, had secured "a significant amount of material" and frozen funds.
Reasons Behind FCA's Intervention
The FCA, which ordered EES to cease trading on June 4, said it took action after lengthy engagement over serious concerns about financial crime risks, such as money laundering, in the way the firm was operating.
Company Response and Trading Status
EES did not immediately respond to requests for comment.
Firm's Statement and Customer Impact
But the regulator said the firm had not fought a decision to force it to stop trading last week and that it had agreed it was not in its interests to seek to return to normal trading.
The payments firm posted a statement on its website stating it was unable to trade, onboard new customers, was not accepting any new funds and that customers were also unable to withdraw funds.
FCA's Stance on Financial Crime
"The risk of payment firms being used by criminals to launder cash to fund other offences is significant, which is why they must meet expected standards," said Matthew Long, the FCA's director of payments and digital assets.
"Fighting financial crime is at the heart of our strategy - and that means using our powers to their fullest extent to protect consumers and the integrity of the financial system."
(Reporting by Kirstin Ridley; Editing by Paul Simao)
