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ePayments Systems Forced To Cease Activity; Million Accounts Frozen

13 February 2020 15:32, UTC
ePayments Systems Forced To Cease Activity; Million Accounts Frozen
By Anna Martynova

One of the largest digital currency institutions in the UK was forced to cease its activity due to increased concerns about anti-money laundering (AML) procedures. ePayments Systems Ltd is popular with traders due to crypto-fiat transfers. The company sent its users emails that detail the results and consequences of the FCA audit.

It is currently impossible to access a million accounts; users cannot transfer, exchange, withdraw and deposit funds, as well as use their ePayments cards.

According to a statement of ePayments Systems Ltd, the financial regulator has identified “weaknesses” that need to be fixed — they didn’t specify the “weaknesses” the FCA found in electronic payment systems. The company was registered in the UK and licensed by the FCA to issue electronic money and conduct payment transactions. Its users had to go through the KYC procedure and disclose personal information to set up an account.

Analysts suggest that this course of events was caused by the 5th EU Anti-Money Laundering Directive entering into force. It is known that the Directive has already affected many companies engaged in online payments. Thus, the N26 mobile banking service provider will leave the UK as a result of Brexit and increased control by the British regulator — its license is no longer valid.

Image courtesy of Akket.com



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