Regulator fines company £400,000 for failing to meet its due diligence obligations and providing false information
20 March 2020
MobBill, a Level 1 provider, committed three breaches of regulation.
The Phone-paid Services Authority has fined MobBill (UK) Ltd, a Level 1 provider, £400,000 after it committed three breaches of the PSA’s Code of Practice.
The first of these was that MobBill didn’t fulfil its due diligence obligations, because it didn’t conduct thorough checks on a Level 2 provider.
The PSA will shortly be consulting on updated Guidance on due diligence, risk assessment and control.
The second and third breaches concerned the provision of false or misleading information to the PSA. The regulator alleged that MobBill had breached this paragraph of the Code twice, by providing false revenue information and false information about the number of people who complained about the service.
The Tribunal upheld these serious breaches and imposed a fine of £400,000 and a formal reprimand.
Read the full decision here.