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Regulatory Settlement Agreement between the GFSC and IDT Financial Services Limited

22 Jul 21

Statement on IDT Financial Services Limited

A Regulatory Settlement Agreement has been entered into between the Gibraltar Financial Services Commission (GFSC) and IDT Financial Services Limited (IDTFS), a Gibraltar company. This Agreement relates to the firm as at October 2018 when standards in certain areas fell below what was expected of it for regulatory purposes.

IDTFS is authorised by the GFSC in terms of a banking permission with various permitted regulated activities relating to payment services and electronic money services (GFSC authorisation number FSC0002FSA). It also trades under the business name IDT Finance.

In October 2018, the GFSC undertook a routine visit and review of IDTFS’s compliance with relevant financial services legislation. As part of this visit the GFSC found certain matters which required improvement. Since this time IDTFS has engaged and co-operated with the GFSC and has remediated the matters identified in this review, implementing significant improvements to its systems and its internal policies and procedures. 

Regulatory Outcome:

IDTFS acknowledges and accepts that its transaction monitoring infrastructure fell below the required regulatory standards in certain respects. As a result there was a greater need for oversight of its programme managers for which it was insufficiently resourced.  

Additionally, the need for certain improvements in the firms internal documented policies and procedures were also identified. 

IDTFS has since substantially improved its systems relating to its transaction monitoring, having invested heavily in a bespoke transaction monitoring software as part of the remediation of the issues raised.

IDTFS has agreed to pay an administrative penalty under the Supervisory Bodies (Powers etc) Regulations 2017 in the sum of £298,387.50 by way of an agreed regulatory settlement with the GFSC. 

IDT continues to hold its authorisations from the GFSC and no further action is contemplated by the GFSC in relation to this matter.