In
a regulatory development, Quickbit Limited, authorized by the Gibraltar
Financial Services Commission (GFSC) as a Virtual Asset Arrangement Provider,
is facing severe consequences for contraventions of the Proceeds of Crime Act.
The GFSC, following a thorough investigation and onsite visit in February 2023,
has taken decisive action against Quickbit for various violations in key areas
of customer due diligence.
The
GFSC Anti-Money
Laundering and Counter Financing of Terrorism Supervision Team conducted an
extensive onsite examination at Quickbit in February 2023. The investigation
revealed several regulatory breaches concerning the application of Customer Due
Diligence Measures (CDD), timing of verification, Enhanced CDD, Politically
Exposed Persons, and Risk Assessment.
Despite
the identification of these deficiencies during the onsite visit, Quickbit
failed to take adequate remedial measures, leading to an escalation of the
regulatory actions against the company.
A
Decision Notice has been officially issued by the GFSC, imposing the
cancellation of Quickbit’s registration under Regulation of the Proceeds of
Crime Act. This decisive move by the GFSC underscores the severity of the
identified breaches.
The
cancellation of registration effectively restricts Quickbit’s ability to
continue its operations as a Virtual
Asset Arrangement Provider. This regulatory action has immediate and
far-reaching consequences for Quickbit, impacting its standing in the financial
industry and potentially affecting its relationships with clients and
stakeholders.
No fines for Quickbit Limited following investigation in Gibraltar https://t.co/mrt5FPKTg6
— Cision News (@CisionNews) January 3, 2024
Anticipation
and Resolution of Customer Knowledge Deficiencies
In
an update, Quickbit announced the completion of the GFSC investigation into its
subsidiary. While the investigation has led to the revocation of Quickbit’s
local registration in Gibraltar, the company is pleased to report that no fines
will be imposed by the GFSC.
Daniel Sonesson, CEO of Quickbit, Source: LinkedIn
This
follows Quickbit’s earlier disclosure that its subsidiary in Gibraltar was
under scrutiny for deficiencies in customer knowledge processes, specifically
relating to the local part of operations conducted before the start of 2023.
The potential for fines or similar penalties was anticipated, but following the
GFSC’s decision, such measures will not be implemented.
It
is noteworthy that…
