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Money laundering

Lycamoney Faces Crackdown Over Anti-Money Laundering Failures

Strategic Insights

— 1 min read

Lycamoney, a payments business controlled by British-Sri Lankan entrepreneur Allirajah Subaskaran, has been hit by a crackdown from Britain's financial watchdog, the Financial Conduct Authority (FCA), over concerns that the company would not be able to spot fraud. The FCA's inquiry came as part of a broader crackdown on anti-money laundering, with the regulator warning many payment firms last year to tighten up their processes or risk penalties. Lycamoney was forced into a strict oversight regime with the FCA and was required to stop accepting new customers, a block that remained in place until earlier this year. The company's website remains offline, and the business has faced accounting and tax issues in recent years.

Key Takeaways:

  • Lycamoney, a payments business controlled by Allirajah Subaskaran, was targeted by the Financial Conduct Authority (FCA) in 2024 over anti-money laundering failures.
  • The company was forced into a strict oversight regime with the FCA and was required to stop accepting new customers, a block that remained in place until earlier this year.
  • The FCA's inquiry came as part of a broader crackdown on anti-money laundering, with the regulator warning many payment firms last year to tighten up their processes or risk penalties.
  • Lycamoney's website remains offline, and the business has faced accounting and tax issues in recent years, including a refusal by auditors to sign off its accounts due to insufficient evidence of loans totaling almost £150m.
  • Companies House filings show that Allirajah Subaskaran is the ultimate owner of Lycamoney, and his sprawling web of mobile, media, and payments businesses has come under increasing scrutiny in recent years.
  • Mr. Subaskaran donated over £2m to the Tories between 2011 and 2016 and founded Lycamoney after establishing Lycamobile in 2006.

Statistics:

  • The FCA warned many payment firms last year to tighten up their anti-money laundering processes or risk penalties.
  • Lycamoney's website remains offline due to the FCA's crackdown.
  • Allirajah Subaskaran donated over £2m to the Tories between 2011 and 2016.
  • Lycamobile's accounting issues led to a refusal by auditors to sign off its accounts due to insufficient evidence of loans totaling almost £150m.

Sources:

  • The Financial Conduct Authority (FCA)
  • Companies House
  • Lycamoney's latest accounts
  • A report last year warning payment firms to tighten up their anti-money laundering processes.

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