Financial Supervision Authority issues precept to Eurex Capital
The Financial Supervision Authority issued the paying authority AS Eurex Capital a precept obliging it to immediately bring its activity into compliance with legal acts governing the activities of paying authorities and e-money institutions and to comply with requirements arising from the Money Laundering and Terrorism Financing Prevention Act.
AS Eurex Capital has on numerous occasions failed to comply with the requirement of identifying the customers that have used its payment services and the nature of their economic activity. In doing so, it failed to comply with requirements arising from the Money Laundering and Terrorism Financing Prevention Act. In accordance with the act, a paying authority must, among other things, notify the Financial Intelligence Unit in case of suspicion of money laundering or terrorism financing.
A paying authority, being an obliged person under the Money Laundering and Terrorism Financing Prevention Act is obliged to prevent the use of the Estonian financial and economic system for the purpose of money laundering and terrorism financing. By fulfilling these obligations, financial institutions uphold the trustworthiness of the entire Estonian financial sector.
A payment service is a service that allows cash deposits and withdrawals to be made to and from a payment account and also allows means of payment or payment instruments to be issued, payment transactions executed and money transferred. The Paying Authorities and E-Money Institutions Act that entered into force on 22 January 2010 established new rules regarding the activities of payment service providers and oversight. Under the new rules, an activity licence must be applied for from the Financial Supervision Authority.