Payments processing firm Phoenix Payments Limited will be appealing an FIAU €435,576 fine for a series of anti-money laundering breaches linked to cryptocurrency, the company said.
In a statement, it said the FIAU findings were “of an administrative nature” and did not relate to suspicions or evidence of money laundering.
The FIAU said on its website earlier in October that it had fined Phoenix Payments Limited following an inspection that had uncovered a series of regulatory breaches.
Phoenix said on Friday it made formal representations with the FIAU on May 7 explaining and reiterating that it is fully committed to combatting money laundering, the funding of terrorism and other financial crime.
It outlined to the FIAU a number of material disagreements with the FIAU findings includeing a number of instances where the FIAU omitted to take into consideration all of the information, documentation and other measures presented by the company during the Compliance Review.
It seems these were disregarded by the unit, it said, adding it “remains concerned” by the FIAU’s systematic nature of these “serious omissions which appear unjustified, arbitrary and suggest that key aspects of the company’s AML/CFT framework have been misunderstood”.
Phoenix said it has endeavoured to clarify these misconceptions of the FIAU however, the unit understand the way the company operates and how its AML/CFT compliance framework is implemented in line with the applicable AML/CFT Rules and Regulations.
It also said that it is “extremely worrying” that the FIAU is the same body that has issued these “gargantuan administrative penalties”, which prejudice the right of fair hearing embedded in theConstitution of Malta and the European Convention of Human Rights.
It said it will appeal the FIAU’s decision and also seek redress constitutionally.
It affirmed its policy of zero-tolerance even in cases that suggest the “slightest hint of improper conduct” and said it continues to rely on the integrity, professionalism and dedication of its staff members.