The UK Financial Conduct Authority has cancelled Dania Money Transfer Ltd’s registration as a Small Payment Institution, marking a serious regulatory action tied to anti-money laundering compliance failures, reporting gaps, and concerns about the firm’s conduct under the Payment Services Regulations 2017. The cancellation took effect on March 5, 2026, and the FCA said the action was taken to advance its consumer protection and market integrity objectives.
Key point: The FCA concluded that Dania Money Transfer no longer met the conditions required to stay registered as a Small Payment Institution, including obligations linked to UK anti-money laundering rules and ongoing regulatory disclosures.
FCA action takes effect from March 5
According to the regulator, Dania Money Transfer Ltd’s SPI registration was cancelled under the framework of the Payment Services Regulations 2017. The FCA determined that the firm no longer satisfied the conditions for registration and highlighted multiple failings that, taken together, justified the removal of its status.
A central issue was the firm’s failure to comply with a requirement under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. The firm was required to be included in a register maintained under those rules, but that condition was no longer being met.
AML registration issue became a major trigger
The FCA said Dania Money Transfer failed to notify the Authority after its registration under the money laundering regulations had been cancelled. That mattered because the loss of that registration meant the firm was no longer meeting a core condition for remaining on the FCA’s register as a Small Payment Institution.
The regulator also said the company failed to notify it that a subsequent application had been rejected. In the FCA’s view, this created a further breakdown in transparency and regulatory communication, especially for a firm operating in the payments sector where trust, controls, and formal oversight are essential.
No payment services provided within 12 months
The FCA also said the firm had failed to provide payment services within 12 months of registration. That point added another layer to the regulator’s concerns. The Authority noted that Dania Money Transfer had not been permitted to provide payment services since July 31, 2024, when its HMRC registration was cancelled.
That timeline appears to have played an important role in the case. A payments firm that is no longer properly registered and is not actively providing services faces heightened scrutiny, particularly when its regulatory status and operational disclosures do not align.
Main issues flagged by the FCA included:
- Failure to meet the conditions for SPI registration under the Payment Services Regulations 2017.
- Failure to remain included in the relevant anti-money laundering register.
- Failure to notify the FCA that its MLR registration had been cancelled.
- Failure to notify the FCA that a later application had been rejected.
- Failure to provide payment services within 12 months of registration.
- Failure to submit the annual FSA057 regulatory return for the year ending 2024.
- Questions over reported payment services despite the firm saying it had not been actively trading.
Regulatory return concerns added to the case
Another part of the FCA’s case focused on regulatory reporting. The firm submitted the FSA057 regulatory return for the year ending 2023 and reported payment services activity. However, the FCA said this sat uneasily with the firm’s earlier statement that it had not been actively trading.
When the Authority sought evidence to support the payment services that had been reported, the firm did not provide it despite requests. That lack of supporting evidence appears to have deepened the regulator’s concerns about the accuracy of the firm’s disclosures and its willingness to engage with supervisory requirements.
The FCA also said that, despite repeated requests and warnings, Dania Money Transfer failed to submit its annual FSA057 regulatory return for the year ending 2024. For regulated firms, repeated non-submission of mandatory returns is a serious issue because it limits the regulator’s ability to monitor business activity, assess risks, and protect consumers.
Consumer protection and market integrity were central
In setting out the decision, the FCA said the cancellation action had been imposed in order to advance its consumer protection and integrity objectives. That language is significant because it underlines the broader regulatory logic behind the move. The case was not framed as a technical filing problem alone, but as a pattern of failures that touched registration status, anti-money laundering requirements, operating permissions, and regulatory reporting.
For firms in the payments space, the message is clear. Registration is not a one-time administrative step. It depends on continuing compliance, timely notifications to the regulator, and accurate annual reporting. Once those elements begin to break down, the risk of enforcement action rises quickly.
What this means for the payments sector
The Dania Money Transfer decision is another reminder that UK payments regulation remains tightly focused on anti-money laundering controls and supervisory transparency. Smaller firms, including those registered as SPIs, are still expected to meet core compliance standards and keep the FCA informed of material changes affecting their status.
The action also highlights the importance of alignment between a firm’s real operating position and the information submitted to regulators. Where a company says it is not actively trading but files returns showing payment services activity, that mismatch can invite further questions. Where records, permissions, and filings are not kept up to date, regulators are more likely to intervene.
Readers looking to review the regulator’s framework for payment institutions and compliance obligations can refer to the Financial Conduct Authority, which outlines the standards firms are expected to meet under UK financial services rules.
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