FCA tells Allied Wallet to cease trading

Maria Nikolova

The firm will have to cease providing all services enabling cash placement on a payment account, services enabling cash withdrawals, execution of payment transactions, and money remittance.

The UK Financial Conduct Authority (FCA) has earlier today posted a statement concerning Allied Wallet Limited, a firm providing credit card processing & merchant services.

The FCA explains that it has imposed a number of requirements upon the firm.

Allied Wallet will have to refrain from AIS or PIS for an indefinite period. This means that the firm will have to comply with the requirements in regulation 78A(2)(b)of the Electronic Money Regulations 2011 to refrain from providing account information services or payment initiation services for an indefinite period.

Further, Allied Wallet must not carry out any of the activities for which it has previously been authorised pursuant to Part 2 of the Regulations (including, for the avoidance of doubt, carrying out any activities through its agents) namely:

  • Services enabling cash placement on a payment account;
  • Services enabling cash withdrawals from a payment account;
  • Execution of payment transactions (not covered by a credit line);
  • Execution of payment transactions (covered by a credit line);
  • Issuing payment instruments or acquiring payment transactions;
  • Money remittance;
  • Execution of payment transactions via telecoms, IT system or network operator; and
  • Issuing electronic money.

In addition, Allied Wallet must not in any way dispose of, deal with or diminish the value of any of its assets, whether held in the United Kingdom or elsewhere, without the prior written consent of the Authority.

Also, Allied Wallet must not in any way dispose of, deal with or diminish the value of any funds that it holds that have been received in exchange for, or are held in respect of, electronic money that has been issued whether safeguarded funds or otherwise, held in the United Kingdom or elsewhere, without the prior written consent of the FCA. Allied Wallet is also required to safeguard relevant funds.

The FCA also requires Allied Wallet to update its websites. At the moment of publication of this article, however, there is no statement concerning the latest developments on Allied Wallet’s website.

Allied Wallet is required to secure all books and records. The firm will also have to provide daily notifications to the FCA and to notify its agents of these requirements.

The FCA says that any customer with questions should contact the firm.

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