FCA probes Euro Exchange over suspected offences under the Money Laundering Regulations (MLRs).

The Financial Conduct Authority has opened an investigation into Euro Exchange Securities UK Ltd (EES) over suspected offences under the UK’s anti-money laundering rules. No findings have been reached.

The investigation into possible MLR offences was announced later, on 17 September 2026.  

• The FCA said it appears that, between 1 February 2020 and 4 June 2026, EES may have committed offences under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the MLRs).

• According to the regulator, EES may have failed to take appropriate steps to identify and assess money-laundering risks.

• That includes risks relating to its customers, the countries or geographic areas in which it operates, its services, its transactions, and its delivery channels, and the failure to sufficiently document and update that assessment.

The FCA also said the firm may have failed to establish and maintain policies, controls and procedures to mitigate and manage those risks effectively. The areas cited include:

• Customer due diligence

• Ongoing monitoring controls

• Internal governance and oversight

• Resourcing and allocation of responsibilities

• Record-keeping and escalation/reporting mechanisms

The regulator stated explicitly that it has not yet reached any conclusions about what happened or whether EES breached any relevant requirements.

Earlier action against the firm

• The investigation follows a sequence of interventions earlier in 2026.

• On 2 June 2026, the FCA required EES to cease carrying on any regulated electronic money or payment services.

• A First Supervisory Notice issued on 2 June 2026 (published on 2 August 2026) confirmed that EES could not carry on electronic money or payment services. It also imposed an asset requirement, including that the firm must not return, transfer, or deal in electronic money and must ensure that relevant funds are ringfenced in a designated safeguarding account.

• Customer funds held by electronic money institutions are not covered by the Financial Services Compensation Scheme. The special administrators are responsible for assessing safeguarded funds and, where possible, managing the return of client money.

• On 4 June 2026, the court appointed interim managers after the FCA applied, citing serious concerns about how the firm had operated its business and significant risks of financial crime. Those concerns included systemic weaknesses in the firm’s financial crime framework and safeguarding arrangements, as well as issues of ownership and governance.

• On 11 June 2026, the High Court confirmed the appointment of special administrators — Duncan Perring and James Bennett of Teneo Financial Advisory Limited — under the Payment and Electronic Money Institution Insolvency Regulations 2021.

The FCA has:-

• Said fighting financial crime is central to its strategy and that payment firms must meet expected standards because of the risk they can be used to launder cash.

• It did not allege that specific criminal proceeds were laundered through EES in the investigation notice; it described possible failures of risk assessment and controls under the MLRs. Those remain unproven pending the investigation.

Primary sources (full URLs):

• FCA investigation announcement (17 September 2026): https://www.fca.org.uk/news/enforcement-investigations/fca-opens-investigation-euro-exchange-securities-uk-ltd

• FCA press release on requirements and interim managers (first published 5 June 2026): https://www.fca.org.uk/news/press-releases/fca-imposes-requirements-euro-exchange-securities-uk-limited-and-interim-managers-appointed-court

• FCA press release on special administrators (11 June 2026): https://www.fca.org.uk/news/press-releases/court-orders-appointment-special-administrators-euro-exchange-securities-uk-limited

• First Supervisory Notice PDF (linked from the investigation page): https://www.fca.org.uk/publication/supervisory-notices/euro-exchange-securities-uk-ltd-2026.pdf

• Contemporary reporting that tracks the same official announcements includes Reuters: https://www.reuters.com/legal/government/uk-regulator-probing-payments-firm-over-suspected-anti-money-laundering-failings-2026-09-17/ and https://www.reuters.com/legal/transactional/uk-regulator-shutters-payments-firm-money-laundering-concerns-2026-06-11/