Emma RadmoreThe FCA has published a Decision Notice cancelling the registration of a small payment institution which had been registered with it for 5 years but, despite repeated warnings, had not registered with the HMRC for AML supervision.
The FCA registered Taj Exchange as an SPI in May 2020, and a condition of its authorisation was that it must be registered with HMRC under the MLRs. The FCA said the firm had submitted numerous applications to HMRC that were refused, and had also not told the FCA of the refusals.
The firm said that it had an application under current review, had shown good faith, had not meant to conceal information from the FCA and had now engaged specialist consultants to help with its HMRC application. It said cancellation would be disproportionate since it was actively remedying the issue and that cancellation would disrupt its services to customers and so cause them unnecessary harm. The FCA was unmoved, saying the firm has had ample opportunity to remedy the breach, and that it should not have been providing any payment services without registration. Its regulatory returns for 2020-2022 had suggested it was providing payment services, but those for 2022-3 that it was not. The representations gave the FCA cause for concern that it was in fact still doing so. So the FCA confirmed the Decision Notice and did not agree to any deferral, given the firm had had 5 years to remedy the lack of HMRC registration.