MFSA Fines Insignia Cards Limited €142,000 for Rules Breaches
The Malta Financial Services Authority (MFSA) has decided to proceed with imposing an administrative penalty of €142,000 against Insignia Cards Limited, which is licensed to undertake payment services and to issue electronic money.
The MFSA found that the indicated company was in breach of the following:
Financial Institution Rule FIR/02/2020 for failure to keep proper record keeping arrangements;
Article 10B (1) of the FIA (the Financial Institutions Act) and the FIA (Safeguarding of Funds) Regulation, Subsidiary Legislation 376.04 for failure to properly safeguard clients' funds;
Banking Rule 14/2020 for failure of alignment of internal documentation with statutory obligations;
Article 8B (1) of the FIA for failure to notify the Authority of the outsourcing of operational functions;
Article 5(1)(c) of the FIA in relation to weak governance arrangements;
Article 16 (5) of the MFSA Act for breach of provision of information to the Authority.
Besides, the financial regulator directed the entity to:
Cease the prefunding of charge cards with immediate effect;
Cease the processing of payments from Insignia Global Solutions Limited and Insignia Med Limited with immediate effect; and
Appoint an independent third-party firm to provide guidance.
In November 2021, Fazzaco reported that the MFSA has become aware of an unlicensed entity operating under the name of FxCityIndex which has an internet presence at https://www.fxcityindex.com/.
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