The UK Financial Conduct Authority (FCA) has imposed requirements on Euro Exchange Securities UK (EES), the London entity of a payments group, citing concerns linked to potential money laundering.
In a brief statement, the regulator said it has directed EES to stop carrying out any regulated electronic money or payment services.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Following an FCA application, the court has appointed Duncan Perring and James Bennett of Teneo Financial Advisory as interim managers to oversee the firm.
The FCA said the action followed “serious concerns” about how EES operated its business, which indicated significant financial crime risks.
The regulator pointed to “systemic weaknesses” in the firm’s financial crime framework and safeguarding arrangements. It also cited issues connected to ownership and governance.
According to the FCA, the risks “could have had an impact” on consumers and on market integrity.
A court hearing is scheduled for 11 June 2026. After the hearing, the court may lift the current order or place EES into special administration.
The FCA has also applied to have the proceedings recognised in the US, Bloomberg reported, citing filings in a US federal court.
“The FCA has expressed concerns that companies in the company’s network and clients of the company have been linked to money laundering, or the failure to prevent it,” the publication quoted an insolvency official appointed by the watchdog as writing in the US filing.
According to its website, Euro Exchange was founded in 2007 by Luis A. Gasparini. By 2016, the company said it had obtained an API licence from the FCA and that this was upgraded to Electronic Money Institution status in 2018.
Euro Exchange registered with the European Payments Council in 2020 and became a principal member of Mastercard in 2021.
It also said it reached a $1bn turnover milestone in 2022.
