With A Money Transfer Firm Being Fined Millions For Money Laundering Failings, Nicola Sharp Of Financial Crime Specialists Rahman Ravelli Outlines The Risks Such Companies Face
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A money services business has been fined £4.5 million for
breaching anti-money laundering regulations.
HM Revenue and Customs (HMRC) has announced that it has imposed
the penalty on Irfan Exchange. In a notice of the fine, published
by HMRC, it states that the company failed to carry out risk
assessments, did not implement proper anti-money laundering
procedures and was not carrying out effective due diligence. The
company also failed to properly keep records.
Irfan has not filed an appeal against the fine, according to
HMRC's website. The company offers services including
international transfer of funds and foreign currency.
Any company that provides financial services which include the
use of cash payments should have money laundering procedures of the
highest standard in place. There are obvious money laundering risks
associated with cash payments - and these risks have to be
addressed.
It is no coincidence that the only other company fined more than
£1 million by HMRC since 1 February 2020 was another firm
that offered money transferring services. That company, MT Global,
was fined £23,828,092 and is appealing the penalty
notice.
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