U.K. Seizes Funds Linked to $150 Million Fraud From London Firm
U.K. Seizes Funds Linked to $150 Million Fraud From London Firm
(Bloomberg) -- The U.K. seized 2 million pounds ($2.61 million) from a London-based fintech firm, saying that the funds were linked to a $150 million U.S. wire fraud conspiracy.
QPay Europe Ltd., which offers due diligence and underwriting services, agreed to forfeit the money following court proceedings, the Financial Conduct Authority said in a statement Thursday. The funds were routed repeatedly through different accounts in several countries without appearing to have any legitimate purpose, the FCA said.
The money was linked to a $150 million payment processing scheme under investigation by U.S. authorities who said banks and credit card firms were deceived into processing payments from high-risk businesses such as online gambling, debt collection and prescription drugs. The FCA doesn’t allege that QPay itself was involved in the conspiracy, the watchdog said.
An executive at QPay didn’t immediately comment.
The regulator said its concerns were raised after QPay applied to become a regulated firm in March 2020. The FCA has been attempting to take a more proactive stance by intervening earlier in cases and boosting initial oversight of the firms in its space.
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