CB Payments Ltd. (CBPL), an electronic money institution and payment processing company affiliated with Coinbase, has been fined over 3.5 million pounds ($4.5 million) by the Financial Conduct Authority (FCA) for failing to implement proper controls to prevent high-risk customers from using its services.
Although CBPL is authorized by the FCA, it does not directly offer cryptocurrency services, but acts as an intermediary for customers to access crypto trading within the Coinbase group.
The FCA first raised concerns about CBPL’s controls regarding financial crime after an inspection of its offices in February 2020.
As a result, CBPL voluntarily agreed not to onboard any new high-risk customers until these issues were addressed.
However, the FCA discovered that despite these restrictions, CBPL had still onboarded and provided services to 13,416 high-risk customers, who deposited a total of approximately USD $24.9 million.
