The FCA has confirmed that QPay Europe Limited, which claims to be a fintech start up offering due diligence and underwriting services, has consented to a court order to give up £2m held in its name.

This follows proceedings brought by the regulator under the Proceeds of Crime Act in the Westminster Magistrates’ Court.

The money was initially frozen in urgent proceedings brought by the FCA in October and December 2020.

According to the FCA, the money was the proceeds of illegal activity connected to criminal proceedings in the USA concerning an alleged conspiracy to commit wire fraud against banks, credit card companies and other US financial service providers. The FCA did state it is not alleging that QPay is involved in this conspiracy.

The regulator’s concerns were raised following an application by QPay to become a regulated firm in March 2020. QPay received the money from software firm, Fintech International Q Software WLL, allegedly as an investment.

However, the FCA revealed that it had observed QPay moving the money repeatedly to different bank accounts in several countries with none of these transactions appearing to be related to legitimate business. QPay has withdrawn its application to be regulated by the FCA.

FCA executive director of enforcement and market oversight, Mark Steward, commented: “Account forfeiture orders are an important means of intervening and capturing illegal money and this action is a good example of what can be done.

“The funds will now be used to assist the FCA and other authorities fight illegal activity.  The FCA will continue to vet applications for authorisation to ensure firms meet our standards of integrity as well as competence.”

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