FCA has published its first supervisory notice of its intent to require an API authorised to provide money remittance services to cease doing so without prior written approval. It wants Probitas to cease all business for existing clients, not onboard any new payment service users and make clear statements on its website and to its client that it is no longer permitted to provide payment services. The firm must also not become the new EMD agent of any firm and must retain all books, records and information so it can provide them to FCA on request.
FCA’s action follows HMRC cancelling the firm’s MLR registration. The registration was a condition of the firm’s PSR authorisation and so the firm no longer meets the conditions for authorisation. Additionally, FCA is concerned that the reason for the HMRC cancellation was that the firm was no longer fit and proper, including that it may have breached the terms of a suspension of registration that HMRC had imposed.