ePayments shutters doors 3 years after suspension due to AML lapses

abdelaziz Fathi

ePayments Systems Ltd, an electronic money institution focused on online payments for the affiliate marketing industry, has begun the process of closing its doors and entered into an orderly, solvent wind-down.

The move comes after the startup has suspended its operations in 2020 over lapses in its anti-money-laundering procedures.

ePayments published a short statement on its website today, giving a few details on the regulatory checks that have led to thousands of customer accounts being frozen. The update reveals that the UK’s financial watchdog, the Financial Conduct Authority (FCA), was behind the whole thing.

ePayments, which claims to have signed one million users, said the watchdog had forced it to freeze all of its customer accounts and banned new account openings “until remedial action has been undertaken to the satisfaction of the FCA.”

The notice further explains that this decision was taken following a regulatory review of its anti-money laundering systems and controls. That review finished, but the City watchdog was not happy with the findings that identified “a number of weaknesses which require urgent remediation to ensure that customers can enjoy a safe and secure platform.”

The regulator told Epayments Systems to stop everything until it had put in place stricter checks to make sure its services weren’t cleaning cash for criminals. During the course of this suspension, customers were unable to transfer, deal, withdraw, deposit funds or use their ePayments cards.

The troubled payment company said customers could rest assured that they are doing everything in ‎their power to resolve the current issues. Customer balances are protected in segregated accounts with major banks, and Epayments is mobilizing required resources to complete the refund process.

Crypto in the background

“In practice, this means that we will not return to full operations and will now focus entirely on providing customers with refunds and working through the process of closing your accounts as we close down the business. Your funds with us remain in safeguarded accounts. The FCA is aware of our decision and this communication,” it explains.

It’s not clear what has led the FCA to suspend the operation of the regulated e-money company, but the team behind ePayments was previously involved with a crypto exchange called Digital Securities Exchange (DSX).

With the UK thrashing its crypto regulation into shape, some crypto providers had no choice but to cease operations while the consequences upon related partners will likely be wide-reaching.

ePayments Systems Ltd has been an authorized electronic money institution with the UK regulator since 2015. The company is approved to issue virtual accounts with IBAN, prepaid cards, process payments, issue e-money, and handle electronic money wallets with the FCA license giving it permission to operate throughout the EU.

At the time, DSX’s status as a registered agent of the FCA-regulated regulated startup was seen as an added layer of scrutiny to the crypto exchange. Users were obliged to pass KYC procedures and disclose ID information to ePayments Systems as part of anti-money laundering rules the issuer must follow.


Read this next


US and South Korea seek extradition of Luna founder Do Kwon

Both US and South Korean officials are seeking to extradite Terraform Labs CEO Do Kwon, just hours after he was arrested in Montenegro.

Retail FX

Pepperstone UK doubles profit, client assets in 2022

The London-based entity of Australian FX broker Pepperstone has reported its financials for the fiscal year ending June 30, 2022. The group had outperformed the last year’s flat performance, having doubled revenues and boosted the broker’s bottom line and shareholders’ fortunes.

Institutional FX

CLS FX volume rises to just shy of $2 trillion in February

Foreign exchange settlement provider, CLS Group saw strong volumes in February 2023 as the banking crisis continues to weigh on a world economy that’s yet to fully recover from the Russia-Ukraine war’s shocks.

Digital Assets

Binance restores trading after 2-hour outage

Binance suffered a breakdown on its trading engine that lasted for about two hours, but the premier cryptocurrency exchange finally managed to restore normal operations at around 14:00 UTC.

Digital Assets

Tether earns $700 million in Q1, taking excess reserves to $1.6 billion

Tether chief technology officer Paolo Ardoino said the world’s largest stablecoin issuer expects to earn more than $700 million in the January-Mach quarter, which will be added to the reserve backing its stablecoin (USDT).

Digital Assets

Narwhal Finance Secures $1M in Seed Funding Led by Animoca Ventures

Narwhal Finance received strong support from Animoca Ventures and angel investors in a $1 million seed funding round, reinforcing the company’s vision of providing an accessible platform to all.


SteelEye tries ChatGPT for market surveillance

This capability can be used as a starting point for initiating a surveillance investigation and to standardize workflow processes to boost the throughput and consistency of cases. It is also useful when analyzing communications in foreign languages, as the system returns the above insights in English regardless of the languages being used.

Industry News

SEC charges ex-Morgan Stanley advisor of NBA players after $13m fraud

Darryl Matthew Cohen was arrested this week and is facing three different federal counts of fraud, which could amount to 20 years in prison if convicted, besides the SEC complaint. 

Industry News

AWS FinTech Africa Accelerator launched, applications until April 27, 2023

Founders will be offered tech resources, expert guidance, and a global network of industry leaders, technologists, entrepreneurs, investors, associations, and partners, in order to build their fintech products.