PSA and Telecom2 Limited reach settlement
The PSA and Telecom2 Limited have reached a settlement in the investigation into Telecom2's adequacy of its risk assessment and control (RAC) and Telecom2’s failure to provide information under direction.
The PSA became aware of potential due diligence, risk assessment and control issues following high levels of complaints received in relation to its merchant providers. The investigation found that Telecom2’s RAC processes were inadequate.
Both parties agreed the case was very serious and Telecom2 agreed to pay a fine of £255,000 plus administrative costs and submit to a compliance audit, carried out by a third party within 12 months. Telecom2 also agreed not to resume its ICSS services until completion of the audit.
For more details, please see the adjudication.