Financial technology company, QPay, has agreed to a court order to give up £2,000,000 held in its name to the Financial Conduct Authority (FCA), the UK’s financial industry regulator.
FCA in a press statement released on Thursday said QPay’s consent is in obedience to a court order issued by District Judge Cieciora at Westminster Magistrates’ Court in London.
The regulator said it had prayed the court to grant the forfeiture order under the United Kingdom’s Proceeds of Crime Act (POCA) 2002.
What’s the Fund About?
According to the FCA, the money is the proceeds of illegal activities connected to criminal proceedings in the United States.
These proceedings, the watchdog further explained, is related to an alleged conspiracy to commit wire fraud against banks, credit card companies, and other financial service providers in the US.
However, the regulator said it is not alleging that QPay is connected to the conspiracy.
FCA noted that it first raised concern about the money following an application by QPay to become a regulated firm in March 2020.
The agency added that QPay “claims to be a fintech startup
Startup
A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is created by at least one or more entrepreneurs. These seek capital as a means to bypass a limited availability of capital and combat high costs. This is why startups seek funding from funding rounds, crowdfunding, venture capitalists, financial institutions, or other sources. What Makes Startups Successful?Given the fact that most startups fail, the first three years of a startup are critical which is why startup founders require capital for talent acquisition, creating effective business models and plans.In parallel it is important to provide proof-of-concept for the long-term through an established user base and consistent revenue streams. Many startups use seed funding, which occurs during the first stage of funding rounds, where fundraised capital is used to conduct market research and product or service development.Sometimes, startups go through an acquisition process, where they merge larger companies competing in a similar industry. Companies that generate less than $20 million annually, possess less than 80 employees, and are primarily controlled by the founding entrepreneur(s) are generally classified as startups. Today, some of the world’s most successful companies started as startups, such as Facebook, Uber, and SpaceX to name a few.
A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is created by at least one or more entrepreneurs. These seek capital as a means to bypass a limited availability of capital and combat high costs. This is why startups seek funding from funding rounds, crowdfunding, venture capitalists, financial institutions, or other sources. What Makes Startups Successful?Given the fact that most startups fail, the first three years of a startup are critical which is why startup founders require capital for talent acquisition, creating effective business models and plans.In parallel it is important to provide proof-of-concept for the long-term through an established user base and consistent revenue streams. Many startups use seed funding, which occurs during the first stage of funding rounds, where fundraised capital is used to conduct market research and product or service development.Sometimes, startups go through an acquisition process, where they merge larger companies competing in a similar industry. Companies that generate less than $20 million annually, possess less than 80 employees, and are primarily controlled by the founding entrepreneur(s) are generally classified as startups. Today, some of the world’s most successful companies started as startups, such as Facebook, Uber, and SpaceX to name a few.
Read this Term offering due diligence and underwriting services.”
FCA explained, “The FCA’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 observed QPay moved the money repeatedly to different bank accounts in several countries and none of the transactions appeared to be related to legitimate business. QPay has withdrawn its application to be regulated by the FCA.”
Mark Steward, CFA’s Executive Director of Enforcement and Market Oversight, said the money will be used to assist the regulatory body and other authorities fighting illegal activity.
“The FCA will continue to vet applications for authorisation to ensure firms meet our standards of integrity as well as competence,” Steward added.
Securing the Forfeiture Order
The FCA disclosed that the money was initially frozen in urgent proceedings instituted by the FCA in October and December 2020.
“Seven account freezing orders in respect of these monies were obtained by the FCA Proceeds of Crime Team in October and December 2020 under Section 303Z1 of the POCA 2002. The application for the monies to be made forfeit was in October 2021,” FCA said in the statement.
The regulator also noted that the powers to apply to freeze monies held in bank accounts were granted to it through amendments to the POCA 2002 made by the Criminal Finances Act 2017.
FCA’s Recent Warnings
Earlier this month, FCA warned investors against trading firm, Etradefxlive, which it said has not been authorized by it and could be a clone
Clone
A clone refers to a fraudulent attempt by an entity or individual to use the details of an authorized firm in a bid to convince people that they work that firm.This refers to a relatively new tactic that has seen fraudsters using the name, ‘firm registration number’, and address of firms and individuals authorized by regulators to suggest they are genuine. Clones are seemingly primitive techniques, though newly adopted by scammers that have evolved in the information era. As regulators push for greater transparency, registers, and authorization, fraudsters have resorted to clone attempts to try to dupe investors.Fraudsters are constantly looking for new ways to scam consumers, but one technique that has been increasingly reported to regulators has been clones.This is a particular issue in the United Kingdom, with the Financial Conduct Authority (FCA) taking measures to crack down on clone firms.These scammers typically cold-call investors to promote shares, property or other investment opportunities that are non-tradable, worthless, overpriced, or even non-existent.How Do Clone Scams Work?In most jurisdictions, firms need to be authorized to sell, promote, or advise on the sale of shares and other investments.Some fraudsters simply claim to represent these authorized firms, or even try to change firms’ contact details on registers to look authentic.The scammers will then give their own phone number, address, and website details to possible victims.Most commonly, scammers claim to be from overseas firms that appear on the registers as these firms do not always have their full contact and website details listed.These entities may even copy the website of an authorized firm, making small tweaks or changes such as to the phone number listed.
A clone refers to a fraudulent attempt by an entity or individual to use the details of an authorized firm in a bid to convince people that they work that firm.This refers to a relatively new tactic that has seen fraudsters using the name, ‘firm registration number’, and address of firms and individuals authorized by regulators to suggest they are genuine. Clones are seemingly primitive techniques, though newly adopted by scammers that have evolved in the information era. As regulators push for greater transparency, registers, and authorization, fraudsters have resorted to clone attempts to try to dupe investors.Fraudsters are constantly looking for new ways to scam consumers, but one technique that has been increasingly reported to regulators has been clones.This is a particular issue in the United Kingdom, with the Financial Conduct Authority (FCA) taking measures to crack down on clone firms.These scammers typically cold-call investors to promote shares, property or other investment opportunities that are non-tradable, worthless, overpriced, or even non-existent.How Do Clone Scams Work?In most jurisdictions, firms need to be authorized to sell, promote, or advise on the sale of shares and other investments.Some fraudsters simply claim to represent these authorized firms, or even try to change firms’ contact details on registers to look authentic.The scammers will then give their own phone number, address, and website details to possible victims.Most commonly, scammers claim to be from overseas firms that appear on the registers as these firms do not always have their full contact and website details listed.These entities may even copy the website of an authorized firm, making small tweaks or changes such as to the phone number listed.
Read this Term firm of the American financial services firm, E*Trade.
The body last month also warned investors against another clone firm, AZOptions, which it said was impersonating Octopus Investments Limited in order to scam unsuspecting investors in the European country.
In the same month, the watchdog also raised the alarm against another firm that was cloning XTB, a broker that belongs to XTB Group and whose branch in the UK, XTB Limited, is being regulated by agency.
Financial technology company, QPay, has agreed to a court order to give up £2,000,000 held in its name to the Financial Conduct Authority (FCA), the UK’s financial industry regulator.
FCA in a press statement released on Thursday said QPay’s consent is in obedience to a court order issued by District Judge Cieciora at Westminster Magistrates’ Court in London.
The regulator said it had prayed the court to grant the forfeiture order under the United Kingdom’s Proceeds of Crime Act (POCA) 2002.
What’s the Fund About?
According to the FCA, the money is the proceeds of illegal activities connected to criminal proceedings in the United States.
These proceedings, the watchdog further explained, is related to an alleged conspiracy to commit wire fraud against banks, credit card companies, and other financial service providers in the US.
However, the regulator said it is not alleging that QPay is connected to the conspiracy.
FCA noted that it first raised concern about the money following an application by QPay to become a regulated firm in March 2020.
The agency added that QPay “claims to be a fintech startup
Startup
A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is created by at least one or more entrepreneurs. These seek capital as a means to bypass a limited availability of capital and combat high costs. This is why startups seek funding from funding rounds, crowdfunding, venture capitalists, financial institutions, or other sources. What Makes Startups Successful?Given the fact that most startups fail, the first three years of a startup are critical which is why startup founders require capital for talent acquisition, creating effective business models and plans.In parallel it is important to provide proof-of-concept for the long-term through an established user base and consistent revenue streams. Many startups use seed funding, which occurs during the first stage of funding rounds, where fundraised capital is used to conduct market research and product or service development.Sometimes, startups go through an acquisition process, where they merge larger companies competing in a similar industry. Companies that generate less than $20 million annually, possess less than 80 employees, and are primarily controlled by the founding entrepreneur(s) are generally classified as startups. Today, some of the world’s most successful companies started as startups, such as Facebook, Uber, and SpaceX to name a few.
A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is created by at least one or more entrepreneurs. These seek capital as a means to bypass a limited availability of capital and combat high costs. This is why startups seek funding from funding rounds, crowdfunding, venture capitalists, financial institutions, or other sources. What Makes Startups Successful?Given the fact that most startups fail, the first three years of a startup are critical which is why startup founders require capital for talent acquisition, creating effective business models and plans.In parallel it is important to provide proof-of-concept for the long-term through an established user base and consistent revenue streams. Many startups use seed funding, which occurs during the first stage of funding rounds, where fundraised capital is used to conduct market research and product or service development.Sometimes, startups go through an acquisition process, where they merge larger companies competing in a similar industry. Companies that generate less than $20 million annually, possess less than 80 employees, and are primarily controlled by the founding entrepreneur(s) are generally classified as startups. Today, some of the world’s most successful companies started as startups, such as Facebook, Uber, and SpaceX to name a few.
Read this Term offering due diligence and underwriting services.”
FCA explained, “The FCA’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 observed QPay moved the money repeatedly to different bank accounts in several countries and none of the transactions appeared to be related to legitimate business. QPay has withdrawn its application to be regulated by the FCA.”
Mark Steward, CFA’s Executive Director of Enforcement and Market Oversight, said the money will be used to assist the regulatory body and other authorities fighting illegal activity.
“The FCA will continue to vet applications for authorisation to ensure firms meet our standards of integrity as well as competence,” Steward added.
Securing the Forfeiture Order
The FCA disclosed that the money was initially frozen in urgent proceedings instituted by the FCA in October and December 2020.
“Seven account freezing orders in respect of these monies were obtained by the FCA Proceeds of Crime Team in October and December 2020 under Section 303Z1 of the POCA 2002. The application for the monies to be made forfeit was in October 2021,” FCA said in the statement.
The regulator also noted that the powers to apply to freeze monies held in bank accounts were granted to it through amendments to the POCA 2002 made by the Criminal Finances Act 2017.
FCA’s Recent Warnings
Earlier this month, FCA warned investors against trading firm, Etradefxlive, which it said has not been authorized by it and could be a clone
Clone
A clone refers to a fraudulent attempt by an entity or individual to use the details of an authorized firm in a bid to convince people that they work that firm.This refers to a relatively new tactic that has seen fraudsters using the name, ‘firm registration number’, and address of firms and individuals authorized by regulators to suggest they are genuine. Clones are seemingly primitive techniques, though newly adopted by scammers that have evolved in the information era. As regulators push for greater transparency, registers, and authorization, fraudsters have resorted to clone attempts to try to dupe investors.Fraudsters are constantly looking for new ways to scam consumers, but one technique that has been increasingly reported to regulators has been clones.This is a particular issue in the United Kingdom, with the Financial Conduct Authority (FCA) taking measures to crack down on clone firms.These scammers typically cold-call investors to promote shares, property or other investment opportunities that are non-tradable, worthless, overpriced, or even non-existent.How Do Clone Scams Work?In most jurisdictions, firms need to be authorized to sell, promote, or advise on the sale of shares and other investments.Some fraudsters simply claim to represent these authorized firms, or even try to change firms’ contact details on registers to look authentic.The scammers will then give their own phone number, address, and website details to possible victims.Most commonly, scammers claim to be from overseas firms that appear on the registers as these firms do not always have their full contact and website details listed.These entities may even copy the website of an authorized firm, making small tweaks or changes such as to the phone number listed.
A clone refers to a fraudulent attempt by an entity or individual to use the details of an authorized firm in a bid to convince people that they work that firm.This refers to a relatively new tactic that has seen fraudsters using the name, ‘firm registration number’, and address of firms and individuals authorized by regulators to suggest they are genuine. Clones are seemingly primitive techniques, though newly adopted by scammers that have evolved in the information era. As regulators push for greater transparency, registers, and authorization, fraudsters have resorted to clone attempts to try to dupe investors.Fraudsters are constantly looking for new ways to scam consumers, but one technique that has been increasingly reported to regulators has been clones.This is a particular issue in the United Kingdom, with the Financial Conduct Authority (FCA) taking measures to crack down on clone firms.These scammers typically cold-call investors to promote shares, property or other investment opportunities that are non-tradable, worthless, overpriced, or even non-existent.How Do Clone Scams Work?In most jurisdictions, firms need to be authorized to sell, promote, or advise on the sale of shares and other investments.Some fraudsters simply claim to represent these authorized firms, or even try to change firms’ contact details on registers to look authentic.The scammers will then give their own phone number, address, and website details to possible victims.Most commonly, scammers claim to be from overseas firms that appear on the registers as these firms do not always have their full contact and website details listed.These entities may even copy the website of an authorized firm, making small tweaks or changes such as to the phone number listed.
Read this Term firm of the American financial services firm, E*Trade.
The body last month also warned investors against another clone firm, AZOptions, which it said was impersonating Octopus Investments Limited in order to scam unsuspecting investors in the European country.
In the same month, the watchdog also raised the alarm against another firm that was cloning XTB, a broker that belongs to XTB Group and whose branch in the UK, XTB Limited, is being regulated by agency.
Source: https://www.financemagnates.com/fintech/qpay-to-give-up-2-million-to-fca-after-court-order/