May 16, 2022
The Financial Conduct Authority has used its powers under the Proceeds of Crime Act to force fintech firm QPay Europe to forfeit £2 million (U.S. $2.5 million) alleged to be linked to a U.S.-based wire fraud conspiracy.
The FCA did not allege QPay, which carries out underwriting and due diligence services, is involved in the conspiracy.
The regulator’s concerns were initially raised following an application by QPay to become a regulated firm in March 2020, when it discovered a series of suspect transactions and found failings in the fintech firm’s anti-money laundering (AML) procedures. QPay has since withdrawn its application to be a regulated firm.
Michael Goodwin QC gives his reaction in Compliance Week commenting that he expected the FCA
“will look to increasingly use forfeiture orders as part of their published drive to combat financial crime.”
He further commented that businesses should look at
“strengthening due diligence and AML procedures to mitigate such risks” and that this was “an obvious first step for all fintechs,”
Read full piece here: [Compliance Week]