FI is withdrawing the authorisation of credit market company Exchange Finans to conduct financing business. The company has had serious deficiencies in its internal governance and control and has in particular neglected to take measures to prevent the operations from being used for money laundering and terrorist financing. The company must cease all operations with immediate effect.
The company’s main business area comprises the services money order redemption, foreign exchange and management of daily takings. These services are examples of operations that are at particular risk of being exposed to money laundering. The company has considered the money laundering risk to be high, but has nevertheless systematically neglected to achieve customer due diligence, continually follow up on business relationships and review and report transactions. The deficiencies are very serious and there is a clear risk of the company having been used for money laundering and terrorist financing.
FI has intervened previously against Exchange Finans and in 2007 a warning was issued to the company and an order to pay an administrative fine of SEK 500,000. Reasons included deficiencies in the company’s internal governance and control, including particular deficiencies in the money laundering area. Because the company has, since then, breached a series of key provisions and has failed to rectify the deficiencies identified previously, FI has decided to withdraw the company’s authorisation.
Following the decision, the company may no longer operate on the financial market and must wind up its operations as soon as possible, although no later than 1 April 2014.
The company also has other services such as savings accounts and lending. Such services must also cease. The savings accounts are covered by the deposit guarantee. The company only operates on the Swedish market and has 25 offices around Sweden.
Today, 14 January, at 9:30 am, Director General Martin Andersson and Chief Legal Counsel Per Håkansson will present the decision and answer any questions. The press conference is for media representatives only and will be held in Finansinspektionen’s premises at Brunnsgatan 3 in Stockholm. There will be a live broadcast of the press conference on FI’s website.