The FCA has announced its expectations of financial services firms in the UK that are using payment processing services provided by companies that are part of the PacNet Group. The FCA explains that following the decision by the United States Department of Treasury to designate the PacNet as a ‘significant transnational criminal organisation’, the FCA understands that this has led to some customer payments including direct debits not reaching creditors and firms. Therefore the FCA expects affected firms to:

  • assess their payments arrangements and take appropriate actions; and
  • ensure that customers are not penalised or treated unfairly for a situation that they are not responsible for and that is out of their control. The FCA encourages firms to communicate clearly with their impacted customers about what action, if any, they need to take, and for firms to review any late fees and penalties imposed in relation to failed payments resulting from an interruption in services provided by PacNet companies.

The FCA is not involved in the Department of Treasury’s action against PacNet group.

View FCA expectations of firms using PacNet Group services, 7 October 2016