FCA cancels Dania Money Transfer registration as Small Payment Institution in UK regulatory action

The UK Financial Conduct Authority has cancelled the registration of Dania Money Transfer Ltd as a Small Payment Institution after concluding that the company no longer meets the legal conditions required to operate in the British payments sector.

In a regulatory notice issued on 6 March 2026, the watchdog confirmed that the decision took effect on 5 March and was made under the Payment Services Regulations 2017. The action concerns the firm’s status in the UK money transfer sector and its compliance with financial supervision rules. The regulator determined that the company failed to meet several regulatory requirements related to anti-money-laundering supervision and reporting obligations. The decision removes Dania Money Transfer Ltd from the register of authorised small payment institutions. The WP Times reports that the FCA concluded the company no longer met the conditions required to remain registered as a Small Payment Institution in the United Kingdom.remain registered as a Small Payment Institution in the United Kingdom.

FCA decision and regulatory framework

The Financial Conduct Authority oversees payment institutions and electronic money companies operating in the United Kingdom. Firms providing payment services — including remittances and cross-border transfers — must comply with the Payment Services Regulations 2017 and related anti-money-laundering rules.

According to the regulator, Dania Money Transfer Ltd no longer satisfied the conditions required for registration as a Small Payment Institution. These conditions include maintaining valid anti-money-laundering registration and submitting regular regulatory reports to the authority. The FCA stated that the firm failed to comply with requirements contained in the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. These rules require financial service providers to be registered in an official anti-money-laundering supervisory register. The regulator concluded that Dania Money Transfer Ltd was not listed in that register after its registration had been cancelled. This meant the company no longer met the legal conditions necessary to remain authorised as a payment institution.

Failure to notify regulators

The FCA also said the firm failed to notify the authority about important regulatory changes affecting its status. According to the notice, Dania Money Transfer did not inform the regulator that its registration under anti-money-laundering rules had been cancelled. This information is required because payment institutions must remain supervised under the anti-money-laundering framework to continue operating legally. The company also did not notify the authority that a later application for registration had been rejected. The FCA stated that this omission meant the firm was operating outside the conditions required by the Payment Services Regulations. Regulators in the United Kingdom require payment companies to promptly inform authorities about any regulatory changes that may affect their ability to provide services.

Lack of payment service activity

Another factor cited by the regulator was the absence of active payment service operations. According to the FCA decision, Dania Money Transfer had not provided payment services within twelve months of registration. Under UK rules, companies that register as Small Payment Institutions must begin operating within a defined period. The regulator also confirmed that the firm had not been permitted to provide payment services since 31 July 2024, when its registration with HM Revenue & Customs under anti-money-laundering supervision was cancelled. Without that registration, the company could not legally carry out payment service activities in the United Kingdom.

Questions over regulatory reporting

The regulator also raised concerns about the accuracy and completeness of the firm’s regulatory reporting. According to the FCA, the company submitted a FSA057 regulatory return covering the year ending 2023. In that document, the firm reported providing payment services. However, the authority said the company had previously indicated that it was not actively trading. When asked to provide evidence supporting the reported payment activity, the firm failed to submit documentation requested by the regulator.

Regulatory returns such as the FSA057 are mandatory reporting documents used by the FCA to monitor activity in the payments sector. These reports typically include information about transaction volumes, operational activity and compliance with regulatory obligations.

Missing annual reporting

The FCA also stated that Dania Money Transfer failed to submit another required regulatory filing. Despite several requests and warnings from the authority, the company did not provide the annual FSA057 regulatory return for the year ending 2024. Failure to submit regulatory returns is considered a serious compliance breach because regulators rely on these documents to assess whether firms are operating lawfully and responsibly. The authority noted that repeated requests were made to obtain the report, but the firm did not provide the required documentation.

Consumer protection and market integrity

In its notice, the FCA said the cancellation of the firm’s registration was necessary to support the regulator’s statutory objectives. Those objectives include protecting consumers, maintaining market integrity and ensuring confidence in the financial services system. Payment service providers play an important role in cross-border remittances and everyday financial transactions. As a result, regulators impose strict oversight requirements on companies operating in the sector.

Firms that fail to comply with anti-money-laundering supervision, reporting rules or registration conditions risk losing their authorisation. The FCA stated that the cancellation of Dania Money Transfer Ltd’s registration was imposed in order to advance its consumer protection and market integrity objectives within the UK financial system.

Oversight of the UK payments sector

The UK payments industry has expanded rapidly in recent years with the growth of digital banking, remittance platforms and fintech services.

Regulators have increased supervision of payment institutions to ensure compliance with financial crime prevention rules and transparency requirements. Companies operating under the Small Payment Institution framework typically provide services such as domestic transfers, remittances and digital payment processing. However, they remain subject to strict regulatory obligations including anti-money-laundering supervision, operational reporting and ongoing compliance monitoring. When firms fail to meet those obligations, the FCA has the authority to suspend or cancel their registration in order to protect the integrity of the UK financial system.

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