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DOJ Opens Inquiry Into Payments Firm Euro Exchange

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DOJ Opens Inquiry Into Payments Firm Euro Exchange

The U.S. Department of Justice (DOJ) is reportedly investigating the chain of companies surrounding payments firm Euro Exchange Securities.

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This probe comes after British authorities seized Euro Exchange in June for possible anti-money laundering (AML) violations, Bloomberg News reported Wednesday (Oct. 14).

The DOJ is seeking information from the court-appointed administrators handling the wind-down of Euro Exchange and sent a subpoena to Banex International Bank, a related company in Puerto Rico, sources familiar with the matter told Bloomberg.

The U.K.’s Financial Conduct Authority (FCA) launched an investigation into possible offenses at Euro Exchange last month, after forcing the company to cease regulated activities in June. The regulator had alleged Euro Exchange presented “unacceptable money-laundering risks,” before moving the firm into insolvency a week later, the report added.

PYMNTS has contacted Euro Exchange for comment but has not yet gotten a reply.

Euro Exchange is one of the U.K.’s electronic-money institutions, which — per Bloomberg — are loosely-regulated payments firms that processed about 4.3 billion pounds (or $5.7 billion) of transactions every day last year, according to FCA data.

While the authority has given several of these companies permission to operate, it has become worried in recent years about fraud and lax anti-crime controls in the industry, the report added.

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