Regulator deletes two Latvian e-transfer firms from register

Latvia's financial regulator, the Financial and Capital Markets Commission (FKTK) on August 12 said it had deleted the register entries of two firms dealing with electronic money transfers.

The firms, called 'Complete Payment Systems' and 'Money Express' have had their entries in the credit register of payment institutions annulled, suspending their provision of payment services. Both companies said that they have no outstanding obligations towards their customers.

Just 10 days ago, Money Express was issued with a fine of just over 4,400 euros by FKTK for failures in its internal control systems regarding the following of anti-money laundering and terrorism financing and proliferation. Two members of staff, Nikolajs Timofejevs un Diāna Saprikina-Ivaņko, were also issued with warnings.

"Money Express Ltd has not provided sufficient customer risk assessment and research, including due diligence, and the transaction monitoring procedures set up by Money Express Ltd have failed to ensure the appropriate quality and risk management of this payment institution and its services," FKTK noted at the time.

Six registered and four licensed payment institutions continue to operate in Latvia, FKTK said. The difference between these two categories is explained at the FKTK website.

Money Express' website carried no immediate news of either its recent penalty or the fact that its entry in the register had been cancelled. In 2017, it acquired another money transfer company, Transferta, making it "the largest operator in Latvia in the area of ​​fast money transfers" according to its own claim.

Complete Payment Systems also had nothing on its website declaring that it could no longer carry out transfers. 

"CPS has been in the business of the e-commerce solutions since 1999, and the experience acquired over these years has allowed us to become a trustworthy partner for customers who rely on payments online," its website declares, adding that ''our business partners include banks in Latvia, Switzerland, Russia, USA, Great Britain and other countries."

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