The United Kingdom’s Financial Conduct Authority (FCA ) has disclosed
that it is investigating three money transfer companies in the country for what
might be a violation of the country’s Competition Act of 1998.
The financial markets regulator disclosed on Wednesday that it has
issued a statement of objections to the three businesses. A statement of objections is a
document that explains why the regulator thinks that a company it is investigating could have contravened the law on business competition in the
UK.
According to the FCA, the three money transfer firms being investigated are
Dollar East (International Travel & Money Transfer) Limited, Hafiz Bros
Travel & Money Transfer Limited and LCC Trans-Sending Limited. Additionally, the
investigation includes LCC’s parent company, Small World Financial
Services Group Limited, which trades as Small World.
The FCA in a statement explained that it “provisionally” believes that
the firms likely overcharged customers between February 18 and May 31, 2017.
The regulator also believes that the firms coordinated and charged a fixed
exchange rate to convert customers’ pounds to Pakistani rupees. In addition, the FCA temporarily holds the view that Small World charged
customers flat rate transaction fees to process their money transfer to Pakistan.
Watch the recent FMLS22 session on fostering partnerships between fintech and banks.
However, the market supervisor explained that it temporarily considers the alleged violation
to be related to the firms’ provision of “in-store services only,” adding that “online
services offered by the parties is not considered to have been subject to the
alleged anti-competitive conduct.”
Furthermore, the UK regulator pointed out that it will only decide if the Competition Act has been breached after it receives oral or written responses to its investigation from the firms. It added that it would not make further disclosures to the public until a final decision has been reached.
“These are provisional findings and may not necessarily lead to further
enforcement action. A statement of objections gives firms notice that the FCA
thinks they have infringed competition law and the opportunity to respond by
making written and oral representations,” the FCA explained.
Meanwhile, the FCA recently fined Guaranty Trust Bank (UK) Limited £7.67 million for gaps in its anti-money laundering systems and controls between October 2014 and July 2019.
The United Kingdom’s Financial Conduct Authority (FCA ) has disclosed
that it is investigating three money transfer companies in the country for what
might be a violation of the country’s Competition Act of 1998.
The financial markets regulator disclosed on Wednesday that it has
issued a statement of objections to the three businesses. A statement of objections is a
document that explains why the regulator thinks that a company it is investigating could have contravened the law on business competition in the
UK.
According to the FCA, the three money transfer firms being investigated are
Dollar East (International Travel & Money Transfer) Limited, Hafiz Bros
Travel & Money Transfer Limited and LCC Trans-Sending Limited. Additionally, the
investigation includes LCC’s parent company, Small World Financial
Services Group Limited, which trades as Small World.
The FCA in a statement explained that it “provisionally” believes that
the firms likely overcharged customers between February 18 and May 31, 2017.
The regulator also believes that the firms coordinated and charged a fixed
exchange rate to convert customers’ pounds to Pakistani rupees. In addition, the FCA temporarily holds the view that Small World charged
customers flat rate transaction fees to process their money transfer to Pakistan.
Watch the recent FMLS22 session on fostering partnerships between fintech and banks.
However, the market supervisor explained that it temporarily considers the alleged violation
to be related to the firms’ provision of “in-store services only,” adding that “online
services offered by the parties is not considered to have been subject to the
alleged anti-competitive conduct.”
Furthermore, the UK regulator pointed out that it will only decide if the Competition Act has been breached after it receives oral or written responses to its investigation from the firms. It added that it would not make further disclosures to the public until a final decision has been reached.
“These are provisional findings and may not necessarily lead to further
enforcement action. A statement of objections gives firms notice that the FCA
thinks they have infringed competition law and the opportunity to respond by
making written and oral representations,” the FCA explained.
Meanwhile, the FCA recently fined Guaranty Trust Bank (UK) Limited £7.67 million for gaps in its anti-money laundering systems and controls between October 2014 and July 2019.