In short
- UK FCA - News announced on 4 June 2026 that EES was required to cease regulated electronic money or payment services.
- Financial Conduct Authority published a First Supervisory Notice on 2 August 2026 confirming asset restrictions and ringfencing requirements for EES.
What happened
The Financial Conduct Authority has opened an investigation into Euro Exchange Securities UK Ltd (EES) for possible breaches of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, covering activities from 1 February 2020 to 4 June 2026. The investigation focuses on EES's risk assessment, customer due diligence, and internal controls.
Prior to this investigation, EES was required to cease regulated electronic money and payment services on 4 June 2026, and special administrators were appointed on 11 June 2026 to secure material and freeze funds. The First Supervisory Notice published on 2 August 2026 imposed asset restrictions and ringfencing requirements.
EES may have failed to take appropriate steps to identify and assess the risks of money laundering, including in relation to its customers, the countries or geographic areas where it operated, its services, its transactions and delivery channels, and sufficiently document and update that assessment.
What compliance teams should check
- Review the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 for relevant requirements.
- Examine the First Supervisory Notice (FSN) published on 2 August 2026 for asset and ringfencing obligations.
- Assess compliance with the Payment and Electronic Money Institution Insolvency Regulations 2021 as referenced in the 11 June 2026 announcement.
Why it matters
This investigation highlights the importance of robust AML/CFT controls, including risk assessment, customer due diligence, and internal governance. The FCA's actions, including ceasing EES's regulated activities and appointing special administrators, underscore the regulatory consequences of failing to manage financial crime risks. Compliance officers must ensure their firms meet all requirements under the MLRs and related supervisory notices to avoid similar enforcement actions and protect against financial crime exposure.
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