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ePayments Systems Ltd to Permanently Close its Operations Due to Insufficient AML Protocols

Richard M. SEPTEMBER 14, 2022 1 minute read

FCA accused ePayments Systems Ltd of AML compliance failure. The financial money institution has started the process of closing its operations. Formerly, the team behind ePayments was also indulged in a crypto exchange, called DSX.

An electronic payment service provider, ePayments Systems Ltd, is set to close its operations permanently due to the inability to establish an AML control system. The startup suspended its operations in 2020 over anti-money laundering lapses.

The company published a short note on its website about regulatory checks leading to thousands of customers’ accounts freezing. The update revealed that the Financial Conduct Authority (FCA), the UK’s financial watchdog is behind the whole scenario.

ePayments said that FCA forced them to freeze customers’ accounts and stopped them from opening new accounts “until remedial action has been undertaken to the satisfaction of the FCA.”

The notice explained that the institution’s closure resulted from a regulatory review of anti-money laundering controls. The efforts made by the company couldn’t satisfy FCA as they point out “a number of weaknesses which require urgent remediation to ensure that customers can enjoy a safe and secure platform.”

The regulator briefed ePayments to stop its operations until it ensures that strict checks are in practice and that its service leaves no loophole for criminals to exploit the system. During the operations’ suspension period, customers could not use their ePayments cards, and they were unable to withdraw, transfer or deposit the funds.

ePayments stated that they are doing everything possible to address the current problem. Customer balances are secured in separate bank accounts, and the company is mobilizing the required resources to complete the refund process.

“In practice, this means that we will not return to full operations and will now focus entirely on providing customers with refunds and working through the process of closing your accounts as we close down the business. Your funds with us remain in safeguarded accounts. The FCA is aware of our decision and this communication,” it explains.

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