The UK Financial Conduct Authority opened an investigation into Euro Exchange Securities UK Ltd on 17 September over potential offences under the country’s money-laundering regulations. The investigation covers conduct between 1 February 2020 and 4 June 2026. The regulator said the electronic money and payments firm may have failed to identify, assess and document relevant money-laundering risks. It has not concluded that the company breached any requirement.
The investigation follows supervisory and court action taken in June. The FCA required Euro Exchange Securities to stop regulated electronic money and payment services on 2 June, while court-appointed interim managers took control two days later. The High Court placed the firm into special administration on 11 June. Reuters reported that the company did not immediately respond to a request for comment on the new investigation.
SCOPE OF THE INVESTIGATION
The FCA is examining whether the firm adequately assessed risks linked to its customers, operating countries, services, transactions and delivery channels. It is also investigating whether Euro Exchange Securities maintained sufficient policies and controls for customer due diligence, ongoing monitoring and the management of identified risks.
Other areas under review include internal governance, oversight, staffing, allocation of responsibilities, record-keeping and escalation or reporting mechanisms. These are allegations being investigated, not established findings. The regulator’s notice expressly states that it has not yet determined what happened or whether any relevant rules were breached.
SPECIAL ADMINISTRATION CONTINUES
The enforcement investigation is separate from the firm’s special administration. The FCA said the administrators had secured a significant amount of material and frozen funds after taking control. Earlier restrictions prevented the firm from providing regulated electronic money or payment services and required relevant funds to remain ringfenced in a designated safeguarding account.
The case extends the regulator’s scrutiny from immediate safeguarding and financial-crime concerns to potential offences over more than six years. The next concrete milestones will be any findings or enforcement decision from the FCA and further updates from the special administrators on customer funds. Until then, the investigation does not establish liability.