Xpress Money Services Limited

Xpress Money Services Limited, an authorised payment institution regulated by the FCA, entered special administration on 11 February. The Company is part of a global group of companies under the common ultimate beneficial ownership of Finablr PLC, a company listed on the LSE, which was itself placed into administration on 11 March.

The Company’s principal business activity was the provision of cross-border money transfers, typically offered under the “Xpress Money” brand name, which was used by the Company and a number of affiliated entities within the Group. These services were offered through a network of agents appointed by the Company, comprising banks, payment and other financial institutions, and retail outlets.

In March 2020, citing liquidity constraints at the group level, the Company voluntarily implemented restrictions on its operations in liaison with the FCA. In June 2020, as a result of concerns over the Company’s safeguarding of relevant funds, a number of requirements were imposed on the Company by the FCA which prevented it from conducting its ordinary business. On 7 August 2020, HMRC suspended the Company’s registration under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

Following the imposition of restrictions, the Company liaised with the FCA to carry out an exercise returning money to its customers. This exercise remained incomplete at the time of the Joint Special Administrators’ appointment as a result of difficulties faced by the Company in identifying and contacting customers.

The Joint Special Administrators delivered a Progress Report on 8 September outlining the work undertaken since their appointment. Their main objective has been to contact all customers whom the Company’s records indicated were owed relevant funds (relating to transactions initiated by customers in which funds were not collected by the intended recipient).

The Joint Special Administrators’ staff ultimately attempted to call over 2,000 customers and sent text messages to over 1,000 customers who had not responded inviting them to read an FAQ document on the Joint Special Administrators’ website. Only 13 of these customers have submitted claims totalling £5,210. The Joint Special Administrators reported that engagement has been limited as a result of, amongst other factors, the length of time which has elapsed since the initiation of the remittances, with transactions dating from 2010 to 2020, and the quantum of funds owed to each individual customer, which some customers may not consider material enough to warrant engaging with the Joint Special Administrators.

The Joint Special Administrators and their solicitors are in ongoing correspondence with the FCA with respect to the categorisation of funds prior to setting a claims bar date.

David Hudson and Philip David Reynolds of FRP Advisory are the Joint Special Administrators. They are assisted by Osborne Clarke and Baker & McKenzie.

The full report can be found HERE.