Final Notice
On , the Financial Conduct Authority issued a Final Notice to Fast Remit Limited
FINAL NOTICE
ACTION
1.
For the reasons set out in this Final Notice, the Authority hereby takes the following action.
2.
The Authority issued to FRL the Decision Notice, which notified it that for the reasons
given below and pursuant to Regulation 10(1)(e) of the PSRs, the Authority had decided
to cancel FRL’s authorisation as an API.
3.
FRL has not referred the matter to the Tribunal within 28 days of the date on which the
Decision Notice was given to it.
4.
Accordingly, the Authority has today cancelled the FRL’s authorisation as an API.
1
SUMMARY OF REASONS
5.
On the basis of the facts and matters described below, the Authority considers that FRL
is no longer meeting the conditions for authorisation as an API under the PSRs and it
has breached Regulation 37 of the PSRs in that it has failed to notify the Authority of a
significant change in circumstances relevant to its fulfilment of the conditions for
authorisation set out in Regulation 6(8) of the PSRs. In particular, on 19 December
2020, HMRC cancelled FRL’s registration and removed FRL from the register maintained
under the MLRs, and FRL failed to notify the Authority of this change in its
circumstances.
DEFINITIONS
6.
The definitions below are used in this Final Notice (and in the Annexes):
“the Act” means the Financial Services and Markets Act 2000;
“API” means an authorised payment institution within the meaning of Regulation 2(1)
of the PSRs;
“the Authority” means the Financial Conduct Authority;
“Decision Notice” means the Decision Notice issued by the Authority to Fast Remit Ltd
dated 10 November 2023;
“EG” means the Authority’s Enforcement Guide;
“FRL” means Fast Remit Limited;
“the Handbook” means the Authority’s Handbook of rules and guidance;
“HMRC” means Her Majesty’s Revenue and Customs;
“the
MLRs”
means
Money
Laundering, Terrorist
Financing
and
Transfer
of
Funds (Information on the Payer) Regulations 2017;
“the PSRs” means the Payment Services Regulations 2017;
“the Tribunal” means the Upper Tribunal (Tax and Chancery Chamber); and
“the Warning Notice” means the warning notice given to FRL dated 25 September 2023.
FACTS AND MATTERS
7.
On 30 April 2018, FRL was authorised by the Authority as an API to provide the payment
services of money remittance.
8.
On 19 December 2020, HMRC cancelled FRL’s registration and removed it from HMRC’s
register maintained under the MLR. FRL failed to notify the Authority that its registration
with HMRC had been cancelled.
9.
On 5 January 2021, the Authority contacted FRL in relation to HMRC’s cancellation of
FRL’s registration under the MLR.
2
10.
To date, FRL has not demonstrated to the Authority that it has obtained HMRC registration
after it was cancelled on 19 December 2020. FRL has also failed to apply to cancel its
authorisation despite repeated requests by the Authority that it should do so.
FAILINGS
11.
The statutory and regulatory provisions relevant to this Final Notice are set out in the
Annex.
12.
On the basis of the facts and matters described above, the Authority considers that:
(a) FRL is no longer meeting the conditions for authorisation as an API set out in
Regulations 6(8) of the PSRs, as FRL’s registration with HMRC under the MLRs has
been cancelled;
(b) FRL has breached Regulation 37(1)(a)(i) of the PSRs by failing to notify the
Authority of a significant change in circumstances which is relevant to its fulfilment of
the conditions for authorisation set out in Regulation 6(8) of the PSRs, by failing to
notify the Authority that its registration with HMRC had been cancelled; and
(c) despite repeated requests by the Authority that FRL applies to cancel its
authorisation, it has failed to do so.
13.
Accordingly, the Authority has cancelled FRL’s authorisation as an API.
REPRESENTATIONS
14.
Annex B contains a brief summary of the key representations made by FRL and how they
have been dealt with. In making the decision which gave rise to the obligation to give
this Final Notice, the Authority has taken into account all the representations made by
FRL, whether or not set out in Annex B.
DECISION MAKER
15.
The decision which gave rise to the obligation to give this Final Notice was made by an
Authority staff member under the executive procedures.
IMPORTANT
16.
This Final Notice is given to FRL in accordance with section 390(1) of the Act (as applied
by paragraph 10 of Schedule 6 of the PSRs).
17.
Sections 391(4), 391(6) and 391(7) of the Act (as applied by paragraph 10 of Schedule
6 to the PSRs) apply to the publication of information about the matter to which this
Final Notice relates. Under those provisions, the Authority must publish such
information about the matter to which this Final Notice relates as the Authority
considers appropriate. The information may be published in such manner as the
Authority considers appropriate. However, the Authority may not publish information if
such information would, in the opinion of the Authority, be unfair to FRL or prejudicial
to the interests of consumers.
3
18.
The Authority intends to publish such information about the matter to which this Final
Notice relates as it considers appropriate.
19.
For more information concerning this matter generally, FRL should contact Zishan
Siddique at the Authority (direct line: 020 7066 3747).
Enforcement and Market Oversight Division
ANNEX A
RELEVANT STATUTORY PROVISIONS
1.
Regulation 6 of the PSRs requires an API to comply with a requirement of the MLR to be
included in a register maintained under the MLR where such a requirement applies to the
firm (Regulation 6(8)). The register in which the API must be included under the
Regulations is maintained by HMRC.
2.
Under Regulation 10(1)(e) of the PSRs, the Authority may cancel the authorisation of
an API where the person no longer meets, or is unlikely to continue to meet, any
of the conditions set out in Regulation 6(4) to (9) (conditions for authorisation) or
does not inform the Authority of a major change in circumstances which is relevant
to its meeting those conditions, as required by Regulation 37 (duty to notify change
in circumstances).
3.
Regulation 37(1)(a)(i) of the PSRs requires an API to provide the FCA, without undue
delay, with details of a significant change in circumstances, including, amongst other
things, a significant change which is relevant to its fulfilment of any of the conditions
for authorisation set out in Regulations 6(4) to (9).
RELEVANT HANDBOOK PROVISIONS
4.
In exercising its power to cancel the authorisation of an API, the Authority must have
regard to guidance published in the Authority’s Handbook. The relevant main
considerations in relation to the proposed action specified above are set out below.
5.
The Authority’s policy in relation to exercising its enforcement powers is set out in EG,
the relevant provisions of which are summarised below.
6.
EG 19.20.2 provides that the Authority’s approach to enforcing the PSRs will mirror its
general approach to enforcing the Act, as set out in EG 2.
7.
EG 19.20.5 provides that, in relation to the PSRs, the Authority has decided to adopt
procedures and policies, in relation to the use of its sanctioning and regulatory powers,
akin to those it has under the Act. The statutory grounds in Section 55J of the Act for
cancelling a firm’s Part 4A permission include where the firm no longer satisfies the
Threshold Conditions, the minimum standards a firm is required to meet to obtain and
retain its Part 4A permission.
5
ANNEX B
REPRESENTATIONS
1.
A summary of the key representations made by FRL, and the Authority’s conclusions in
respect of them (in bold type), are set out below.
HMRC registration maintained under the MLR
2.
FRL notified the Authority that it had not done any operations since 2019, had hired an
experienced money laundering reporting officer, and that it had submitted a further HMRC
registration application in July 2023. FRL was still waiting for HMRC to process the
application.
3.
The representations made by FRL do not affect the Authority’s conclusion that FRL is no
longer meeting the condition for authorisation as an API set out in Regulation 6(8) of the
PSRs for the reasons set out in paragraph 5 of this Final Notice.
4.
HMRC cancelled FRL’s registration under the MLRs as a money service business with effect
from 19 December 2020 on the grounds that, amongst other things, a) HMRC had
determined that an individual connected to FRL was not a fit and proper person to carry on
that business; and b) HMRC had determined that FRL was not a fit and proper person in
that there was a risk that FRL may be used for money laundering and terrorist financing.
5.
As far as the Authority is aware, FRL did not appeal HMRC’s decision, and the position
remains that FRL has not been registered under the MLRs for nearly 3 years.
6.
At the time FRL made representations in were made, the individual connected to FRL was
the sole director and sole shareholder/person with significant control of FRL as per the
Companies House register.
7.
Furthermore, it is not clear if FRL will obtain registration under the MLR or that it will do so
imminently.
8.
Accordingly, the Authority is satisfied that that cancellation of FRL’s authorisation as an API
pursuant to Regulation 10(1)(e) of the PSRs is appropriate.
Failure to notify the Authority of a significant change in circumstances
9.
FRL failed to make any representations regarding its breach of Regulation 37(1)(a)(i) of the
PSRs in respect of its failure to notify the Authority of a significant change in circumstances
relevant to its fulfilment of the conditions of authorisation (that HMRC cancelled FRL’s
registration under the MLR as a money service business with effect from 19 December 2020).
10.
The Authority is entitled to cancel FRL’s authorisation as an API pursuant to Regulation
10(1)(e) of the PSRs because of FRL’s failure to inform the Authority that there was, or
was likely to be, a major change in circumstances which was relevant to meeting the
condition for authorisation set out in Regulation 6(8) of the PSRs.
11.
The Authority is satisfied that such cancellation of FRL’s authorisation is appropriate.
6
ACTION
1.
For the reasons set out in this Final Notice, the Authority hereby takes the following action.
2.
The Authority issued to FRL the Decision Notice, which notified it that for the reasons
given below and pursuant to Regulation 10(1)(e) of the PSRs, the Authority had decided
to cancel FRL’s authorisation as an API.
3.
FRL has not referred the matter to the Tribunal within 28 days of the date on which the
Decision Notice was given to it.
4.
Accordingly, the Authority has today cancelled the FRL’s authorisation as an API.
1
SUMMARY OF REASONS
5.
On the basis of the facts and matters described below, the Authority considers that FRL
is no longer meeting the conditions for authorisation as an API under the PSRs and it
has breached Regulation 37 of the PSRs in that it has failed to notify the Authority of a
significant change in circumstances relevant to its fulfilment of the conditions for
authorisation set out in Regulation 6(8) of the PSRs. In particular, on 19 December
2020, HMRC cancelled FRL’s registration and removed FRL from the register maintained
under the MLRs, and FRL failed to notify the Authority of this change in its
circumstances.
DEFINITIONS
6.
The definitions below are used in this Final Notice (and in the Annexes):
“the Act” means the Financial Services and Markets Act 2000;
“API” means an authorised payment institution within the meaning of Regulation 2(1)
of the PSRs;
“the Authority” means the Financial Conduct Authority;
“Decision Notice” means the Decision Notice issued by the Authority to Fast Remit Ltd
dated 10 November 2023;
“EG” means the Authority’s Enforcement Guide;
“FRL” means Fast Remit Limited;
“the Handbook” means the Authority’s Handbook of rules and guidance;
“HMRC” means Her Majesty’s Revenue and Customs;
“the
MLRs”
means
Money
Laundering, Terrorist
Financing
and
Transfer
of
Funds (Information on the Payer) Regulations 2017;
“the PSRs” means the Payment Services Regulations 2017;
“the Tribunal” means the Upper Tribunal (Tax and Chancery Chamber); and
“the Warning Notice” means the warning notice given to FRL dated 25 September 2023.
FACTS AND MATTERS
7.
On 30 April 2018, FRL was authorised by the Authority as an API to provide the payment
services of money remittance.
8.
On 19 December 2020, HMRC cancelled FRL’s registration and removed it from HMRC’s
register maintained under the MLR. FRL failed to notify the Authority that its registration
with HMRC had been cancelled.
9.
On 5 January 2021, the Authority contacted FRL in relation to HMRC’s cancellation of
FRL’s registration under the MLR.
2
10.
To date, FRL has not demonstrated to the Authority that it has obtained HMRC registration
after it was cancelled on 19 December 2020. FRL has also failed to apply to cancel its
authorisation despite repeated requests by the Authority that it should do so.
FAILINGS
11.
The statutory and regulatory provisions relevant to this Final Notice are set out in the
Annex.
12.
On the basis of the facts and matters described above, the Authority considers that:
(a) FRL is no longer meeting the conditions for authorisation as an API set out in
Regulations 6(8) of the PSRs, as FRL’s registration with HMRC under the MLRs has
been cancelled;
(b) FRL has breached Regulation 37(1)(a)(i) of the PSRs by failing to notify the
Authority of a significant change in circumstances which is relevant to its fulfilment of
the conditions for authorisation set out in Regulation 6(8) of the PSRs, by failing to
notify the Authority that its registration with HMRC had been cancelled; and
(c) despite repeated requests by the Authority that FRL applies to cancel its
authorisation, it has failed to do so.
13.
Accordingly, the Authority has cancelled FRL’s authorisation as an API.
REPRESENTATIONS
14.
Annex B contains a brief summary of the key representations made by FRL and how they
have been dealt with. In making the decision which gave rise to the obligation to give
this Final Notice, the Authority has taken into account all the representations made by
FRL, whether or not set out in Annex B.
DECISION MAKER
15.
The decision which gave rise to the obligation to give this Final Notice was made by an
Authority staff member under the executive procedures.
IMPORTANT
16.
This Final Notice is given to FRL in accordance with section 390(1) of the Act (as applied
by paragraph 10 of Schedule 6 of the PSRs).
17.
Sections 391(4), 391(6) and 391(7) of the Act (as applied by paragraph 10 of Schedule
6 to the PSRs) apply to the publication of information about the matter to which this
Final Notice relates. Under those provisions, the Authority must publish such
information about the matter to which this Final Notice relates as the Authority
considers appropriate. The information may be published in such manner as the
Authority considers appropriate. However, the Authority may not publish information if
such information would, in the opinion of the Authority, be unfair to FRL or prejudicial
to the interests of consumers.
3
18.
The Authority intends to publish such information about the matter to which this Final
Notice relates as it considers appropriate.
19.
For more information concerning this matter generally, FRL should contact Zishan
Siddique at the Authority (direct line: 020 7066 3747).
Enforcement and Market Oversight Division
ANNEX A
RELEVANT STATUTORY PROVISIONS
1.
Regulation 6 of the PSRs requires an API to comply with a requirement of the MLR to be
included in a register maintained under the MLR where such a requirement applies to the
firm (Regulation 6(8)). The register in which the API must be included under the
Regulations is maintained by HMRC.
2.
Under Regulation 10(1)(e) of the PSRs, the Authority may cancel the authorisation of
an API where the person no longer meets, or is unlikely to continue to meet, any
of the conditions set out in Regulation 6(4) to (9) (conditions for authorisation) or
does not inform the Authority of a major change in circumstances which is relevant
to its meeting those conditions, as required by Regulation 37 (duty to notify change
in circumstances).
3.
Regulation 37(1)(a)(i) of the PSRs requires an API to provide the FCA, without undue
delay, with details of a significant change in circumstances, including, amongst other
things, a significant change which is relevant to its fulfilment of any of the conditions
for authorisation set out in Regulations 6(4) to (9).
RELEVANT HANDBOOK PROVISIONS
4.
In exercising its power to cancel the authorisation of an API, the Authority must have
regard to guidance published in the Authority’s Handbook. The relevant main
considerations in relation to the proposed action specified above are set out below.
5.
The Authority’s policy in relation to exercising its enforcement powers is set out in EG,
the relevant provisions of which are summarised below.
6.
EG 19.20.2 provides that the Authority’s approach to enforcing the PSRs will mirror its
general approach to enforcing the Act, as set out in EG 2.
7.
EG 19.20.5 provides that, in relation to the PSRs, the Authority has decided to adopt
procedures and policies, in relation to the use of its sanctioning and regulatory powers,
akin to those it has under the Act. The statutory grounds in Section 55J of the Act for
cancelling a firm’s Part 4A permission include where the firm no longer satisfies the
Threshold Conditions, the minimum standards a firm is required to meet to obtain and
retain its Part 4A permission.
5
ANNEX B
REPRESENTATIONS
1.
A summary of the key representations made by FRL, and the Authority’s conclusions in
respect of them (in bold type), are set out below.
HMRC registration maintained under the MLR
2.
FRL notified the Authority that it had not done any operations since 2019, had hired an
experienced money laundering reporting officer, and that it had submitted a further HMRC
registration application in July 2023. FRL was still waiting for HMRC to process the
application.
3.
The representations made by FRL do not affect the Authority’s conclusion that FRL is no
longer meeting the condition for authorisation as an API set out in Regulation 6(8) of the
PSRs for the reasons set out in paragraph 5 of this Final Notice.
4.
HMRC cancelled FRL’s registration under the MLRs as a money service business with effect
from 19 December 2020 on the grounds that, amongst other things, a) HMRC had
determined that an individual connected to FRL was not a fit and proper person to carry on
that business; and b) HMRC had determined that FRL was not a fit and proper person in
that there was a risk that FRL may be used for money laundering and terrorist financing.
5.
As far as the Authority is aware, FRL did not appeal HMRC’s decision, and the position
remains that FRL has not been registered under the MLRs for nearly 3 years.
6.
At the time FRL made representations in were made, the individual connected to FRL was
the sole director and sole shareholder/person with significant control of FRL as per the
Companies House register.
7.
Furthermore, it is not clear if FRL will obtain registration under the MLR or that it will do so
imminently.
8.
Accordingly, the Authority is satisfied that that cancellation of FRL’s authorisation as an API
pursuant to Regulation 10(1)(e) of the PSRs is appropriate.
Failure to notify the Authority of a significant change in circumstances
9.
FRL failed to make any representations regarding its breach of Regulation 37(1)(a)(i) of the
PSRs in respect of its failure to notify the Authority of a significant change in circumstances
relevant to its fulfilment of the conditions of authorisation (that HMRC cancelled FRL’s
registration under the MLR as a money service business with effect from 19 December 2020).
10.
The Authority is entitled to cancel FRL’s authorisation as an API pursuant to Regulation
10(1)(e) of the PSRs because of FRL’s failure to inform the Authority that there was, or
was likely to be, a major change in circumstances which was relevant to meeting the
condition for authorisation set out in Regulation 6(8) of the PSRs.
11.
The Authority is satisfied that such cancellation of FRL’s authorisation is appropriate.
6