ePayments Systems Ltd, an digital cash establishment targeted on on-line funds for the affiliate internet marketing business, has begun the method of closing its doors and entered into an orderly, solvent wind-down. The transfer comes after the startup has suspended its operations in 2020 over lapses in its anti-money-laundering procedures.ePayments revealed a brief assertion on its web site at the moment, giving a couple of particulars on the regulatory checks which have led to 1000’s of buyer accounts being frozen. The replace reveals that the UK’s monetary watchdog, the Financial Conduct Authority (FCA), was behind the entire thing.ePayments, which claims to have signed a million customers, stated the watchdog had pressured it to freeze all of its buyer accounts and banned new account openings “till remedial motion has been undertaken to the satisfaction of the FCA.”The discover additional explains that this resolution was taken following a regulatory overview of its anti-money laundering methods and controls. That overview completed, however the City watchdog was not proud of the findings that recognized “various weaknesses which require pressing remediation to make sure that prospects can get pleasure from a protected and safe platform.”The regulator informed (*3*) Systems to cease every thing till it had put in place stricter checks to verify its providers weren’t cleansing money for criminals. During the course of this suspension, prospects had been unable to switch, deal, withdraw, deposit funds or use their ePayments playing cards.The troubled cost firm stated prospects might relaxation assured that they’re doing every thing in their energy to resolve the present points. Customer balances are protected in segregated accounts with main banks, and (*3*) is mobilizing required assets to finish the refund course of.Crypto within the background“In observe, because of this we is not going to return to full operations and can now focus fully on offering prospects with refunds and dealing by way of the method of closing your accounts as we shut down the enterprise. Your funds with us stay in safeguarded accounts. The FCA is conscious of our resolution and this communication,” it explains.It’s not clear what has led the FCA to droop the operation of the regulated e-money firm, however the crew behind ePayments was beforehand concerned with a crypto trade referred to as Digital Securities Exchange (DSX).With the UK thrashing its crypto regulation into form, some crypto suppliers had no selection however to stop operations whereas the results upon associated companions will possible be wide-reaching.ePayments Systems Ltd has been a licensed digital cash establishment with the UK regulator since 2015. The firm is permitted to concern digital accounts with IBAN, pay as you go playing cards, course of funds, concern e-money, and deal with digital cash wallets with the FCA license giving it permission to function all through the EU.At the time, DSX’s standing as a registered agent of the FCA-regulated regulated startup was seen as an added layer of scrutiny to the crypto trade. Users had been obliged to cross KYC procedures and disclose ID info to ePayments Systems as a part of anti-money laundering guidelines the issuer should comply with.
https://financefeeds.com/epayments-shutters-doors-3-years-after-suspension-due-to-aml-lapses/
