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The
UK’s Monetary Conduct Authority (FCA) and payments-as-a-Service supplier Modulr have agreed on buyer onboarding
restrictions amid new
rules.
Modulr,
an organization within the funds infrastructure sector, serves over 200 shoppers,
together with Revolut, Wagestream, Sage, and BrightPay. It presently processes an
annualized transaction worth exceeding £100 billion.
The
FCA restriction, issued in the beginning of October 2023, has prevented Modulr from
onboarding new associate shoppers utilizing its funds infrastructure for playing cards or
accounts.
In
response to the regulatory adjustments taking impact within the UK throughout 2023 and
2024, together with the brand new UK shopper responsibility, changes to push fee fraud
reimbursement, and a ban on incentive advertising and marketing for high-risk belongings like
cryptocurrencies, Modulr has determined to quickly pause onboarding sure
buyer segments within the UK.
The
firm has begun notifying new companions of the delay, with expectations that
onboarding could not resume till the primary quarter of 2024. Modulr has not
formally commented on the precise deadline.
FCA Investigates
Revolut over Suspicious Account Withdrawals
Finance Magnates
reported earlier that the FCA
was investigating Revolut over allegations of permitting funds to be withdrawn
from accounts flagged as suspicious by the Nationwide Crime Company.
An estimated £1.7 million was reportedly launched from such
accounts between July and August. Revolut knowledgeable the FCA, nevertheless it disputed the
quantity, stating solely £500,000 was concerned. That added to Revolut’s regulatory
challenges because it awaited a UK banking license utilized for in January 2021.
Considerations over auditing, compliance, and company tradition
inside Revolut have arisen in the course of the licensing course of. Revolut operates as a
fee establishment within the UK and has expanded providers internationally,
together with within the US.
Its quest for a US banking license has confronted delays, with
regulatory authorities indicating no pending functions. A spokesperson from
Revolut declined to touch upon the license utility’s standing.
The
UK’s Monetary Conduct Authority (FCA) and payments-as-a-Service supplier Modulr have agreed on buyer onboarding
restrictions amid new
rules.
Modulr,
an organization within the funds infrastructure sector, serves over 200 shoppers,
together with Revolut, Wagestream, Sage, and BrightPay. It presently processes an
annualized transaction worth exceeding £100 billion.
The
FCA restriction, issued in the beginning of October 2023, has prevented Modulr from
onboarding new associate shoppers utilizing its funds infrastructure for playing cards or
accounts.
In
response to the regulatory adjustments taking impact within the UK throughout 2023 and
2024, together with the brand new UK shopper responsibility, changes to push fee fraud
reimbursement, and a ban on incentive advertising and marketing for high-risk belongings like
cryptocurrencies, Modulr has determined to quickly pause onboarding sure
buyer segments within the UK.
The
firm has begun notifying new companions of the delay, with expectations that
onboarding could not resume till the primary quarter of 2024. Modulr has not
formally commented on the precise deadline.
FCA Investigates
Revolut over Suspicious Account Withdrawals
Finance Magnates
reported earlier that the FCA
was investigating Revolut over allegations of permitting funds to be withdrawn
from accounts flagged as suspicious by the Nationwide Crime Company.
An estimated £1.7 million was reportedly launched from such
accounts between July and August. Revolut knowledgeable the FCA, nevertheless it disputed the
quantity, stating solely £500,000 was concerned. That added to Revolut’s regulatory
challenges because it awaited a UK banking license utilized for in January 2021.
Considerations over auditing, compliance, and company tradition
inside Revolut have arisen in the course of the licensing course of. Revolut operates as a
fee establishment within the UK and has expanded providers internationally,
together with within the US.
Its quest for a US banking license has confronted delays, with
regulatory authorities indicating no pending functions. A spokesperson from
Revolut declined to touch upon the license utility’s standing.
