The UK Financial Conduct Authority (FCA) has taken significant action by revoking the registration of Dania Money Transfer Ltd as a Small Payment Institution (SPI). This cancellation is set to take effect on March 5, 2026, under the provisions of the Payment Services Regulations 2017 (PSRs).
Reasons Behind License Revocation
The FCA’s decision came after determining that Dania Money Transfer Ltd did not meet the necessary conditions for SPI registration as stipulated in the PSRs. Key reasons for this decision include:
- The firm’s non-compliance with regulations regarding money laundering and terrorist financing.
- Failure to be listed in the necessary register under The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).
- Failure to notify the FCA about the cancellation of its registration under the MLRs.
- A delay in providing payment services within the required timeframe post-registration.
Regulatory Failures
Dania Money Transfer Ltd has been flagged for various regulatory failures. Notably, the firm had not provided payment services since July 31, 2024, when its registration with HMRC was revoked. Despite claiming to have submitted the FSA057 regulatory return for the year ending 2023, the firm stated it had not been actively trading.
Moreover, the firm did not present any evidence to support its claims regarding the payment services it reported, despite repeated requests from the FCA. It has also failed to submit the required FSA057 regulatory return for the year ending 2024.
Consumer Protection Objectives
The FCA has emphasized that the revocation of Dania Money Transfer’s SPI license aims to enhance consumer protection and uphold the integrity of payment services in the UK. Actions like these are critical in ensuring compliance among financial institutions and safeguarding consumers against potential risks.
