The decision concerning the “Lux International Payment System” was reportedly made because the country’s central bank initiated an examination of the entity. According to reports, the bank has grounds to suspect that the institution may have failed to adhere to anti-money laundering and terrorist financing prevention regulations, alongside other relevant laws. Authorities noted that there are significant deficiencies observed in the institution’s operational activities.
The bank has stated that it suspended its services prior to the issuance of this decision. Furthermore, coverage from ELTA indicated that the LB Board granted the company “Lux International Payment System” a license for electronic money institutions in February 2021. This licensing empowered the entity to issue e-money and provide various payment services as defined within the Payments Act.
The regulatory action taken by the bank suggests a failure to meet established compliance standards. The scrutiny focused on the operational integrity of the payment system. While the initial license confirmed the institution’s right to handle electronic money and facilitate transactions, the subsequent review by the central bank highlighted concerns regarding adherence to national financial regulations.
These concerns prompted the regulatory body to take action against the payment services offered by the institution.
Topics: #institution #bank #money
