The UK Financial Conduct Authority (FCA) has nixed Zeux Limited’s attempt to secure registration as a cryptoasset exchange provider.

The application, submitted in June 2022, showed that the firm had failed to implement anti-money laundering controls and carry out effective risk management.

The anti-money laundering controls put forward by Zeux Limited fell well short of legislative requirements. Registration of the firm would have posed a significant risk of harm to the public.

The application showed:

• Failure to understand, identify and document risks.
• Failure to consider the National Risk Assessment, which sets out key money laundering and terrorist financing risks in the UK.
• Customer risk assessment enhanced due diligence and suspicious activity reporting (SAR) failures.

These points are critical for mitigating the risks of money laundering, terrorist financing and sanctions evasion that a customer may pose.

Cryptoasset exchange providers must be registered with the FCA and comply with the UK money laundering regulations to operate legally in the UK.