Many of the companies that make up the UK’s burgeoning payments scene lack proper controls and some pose an “unacceptable risk” to customers and the integrity of the financial system, according to the markets watchdog.
There are “material issues” with anti-crime controls along with “elevated fraud rates” in some firms, the Financial Conduct Authority wrote in a so-called Dear CEO letter to the heads of electronic-money and payments institutions. The nation’s cost-of-living crisis heightens the risk of customer harm and the regulator will take “more assertive action sooner” against problematic firms, according to the letter.
The FCA authorized hundreds of ...
