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According to the 2020 Cyber ​​Security Breaches Survey, 46% of businesses and 26% of charities in the UK have been victims of cybercrime in the past 12 months. Of the 46% of businesses that experienced cyberattacks, 68% were small and medium-sized businesses (SMEs), 75% were large businesses, and among the 26% of charities, 75% were high-income businesses.

These statistics show why the financial services industry is one of the most supervised and regulated industries in the world. Modern technology has given rise to financial services, while the demand from customers to send money online instantly has proven to be a catalyst for the development of money transfer financial institutions.

Billions of pounds of remittances cross international borders to end up in countless destinations. The scale of these remittances demands extra care and strong regulations in place, both by private online money transfer companies that send money to india (or any other country) and regulatory authorities.

Financial Conduct Authority (FCA)

In the UK, the Financial Conduct Authority (FCA) is one such institution that regulates the financial services industry. All UK based businesses that offer money transfer services online are required to be licensed or registered by the FCA. FCA authorization protects an individual’s funds, and if a business goes into liquidation, customers are the most likely to get their money back.

This is why it is imperative to check whether the business that claims to send money online instantly is FCA regulated or not.

Businesses with a limited presence in the market, i.e. small businesses, may choose to register rather than allow themselves to do so. Online money transfer companies must meet the following requirements to be registered with the FCA:

  • The company must be based in the UK
  • All managers employed must have a clear history of financial crime

FCA regulations

According to the regulations issued by the FCA:

  • Online money transfer companies must maintain a minimum capital if their turnover exceeds 3 million euros per month.
  • Online money transfer companies must follow regulations to combat illegal practices of money laundering and other financial crimes.
  • These companies must guarantee each amount greater than $ 60 and keep it separate from other company funds to be reimbursed to the client in the event of the business dissolution.

What to do if unfair practices are suspected

Regulations are in place to curb suspicious illegal practices against financial institutions. However, whatever regulations are in place, private companies might not follow them.

Suppose a customer who wants to send money to India suspects corrupt practices carried out by an online money transfer company. In this case, he can report the institution to the Financial Ombudsman Service (FOS) – an institution that arbitrates disputes.

The client can also report their suspicions to the FCA or the Office of Fair Trading. The customer is compensated for losses if the business is found to be breaking any regulations or mismanaging remittances.


Large amounts of hard earned remittances leave the UK every year. These amounts, as they increased, led to the development of online money transfer companies. These companies have mushroomed over the years, offering a range of financial services.

To make sure your money is in good hands, make sure the business is either licensed or registered with the FCA. The first and foremost responsibility for tackling financial irregularities rests with clients. If they use trusted companies to transfer their money, it will not only help the government maintain transparency, but will also protect the affected customer from any fraud or incident.

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