FCA refuses crypto-application on harm basis

The FCA has published its decision notice explaining why it has refused the application of Zeux Limited for registration as a crypto firm under the MLRs. The firm submitted its application in 2022. The FCA decided that the AML controls described in the application fell well short of legislative requirements, and that the applicant firm:

• failed to understand, identify and document the risks;
• failed to consider the NRA; and
• had not proposed appropriate customer risk assessment, EDD and SAR procedures.

It urged applicants to read its examples of good and poor practice and book a pre-application meeting.