London’s High Court has confirmed the appointment of special administrators for Euro Exchange Securities UK (EES) after an application by the UK Financial Conduct Authority (FCA).
The decision follows an initial court order last week that required EES to cease trading with immediate effect.
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EES, the UK arm of an electronic money and payments firm with businesses in the US and Spain, did not seek to overturn the earlier ruling.
In a statement posted on its website, the payments firm said: “The firm is currently unable to trade. For the avoidance of doubt, the firm is unable to onboard any new customers and is not accepting any new funds.”
EES will work with the special administrators, with the aim of returning client money as quickly as possible.
Duncan Perring and James Bennett of Teneo Financial Advisory have been appointed as joint special administrators. Since being provisionally appointed last week, they have taken control of the firm and secured “significant amount of material and frozen funds”.
The FCA required EES to stop carrying out regulated electronic money and payment services on 4 June. The regulator acted following engagement with the firm and due to concerns about financial crime risks, including money laundering, linked to the way EES was operating.
The FCA cited “systemic weaknesses” in EES’s financial crime framework and safeguarding arrangements. It also raised concerns related to the firm’s ownership and governance.
The regulator said it worked with partners across government, including the Security Industry Authority.
FCA payments and digital assets director Matthew Long said: “The risk of payment firms being used by criminals to launder cash to fund other offences is significant, which is why they must meet expected standards.
“Fighting financial crime is at the heart of our strategy – and that means using our powers to their fullest extent to protect consumers and the integrity of the financial system.”
Under the insolvency process, the special administrators are responsible for managing customer claims and returning funds where possible.
