FCA accuses Glasgow-Pakistan money transfer firms

The UK’s Financial Conduct Authority (FCA) has alleged that three Glasgow-based money transfer firms fixed prices charged to customers in Glasgow for transferring money from the UK to Pakistan in 2017.

The FCA made the allegations agains Dollar East (International Travel & Money Transfer) Ltd; Hafiz Bros Travel & Money Transfer Limited; and LCC Trans-Sending Limited, including its parent company Small World Financial Services Group Limited trading as Small World.

In a statement of objections, the FCA alleged that for a period in 2017, the three firms coordinated on the exchange rate offered to consumers for converting UK pounds into Pakistan rupees in transferring money to Pakistan, and fixed the level of a flat rate transaction fee charged to consumers when making money transfers from the UK to Pakistan via Small World’s services.

“As a result of this conduct, consumers in Glasgow may have been overcharged for sending money to Pakistan,” alleged the FCA.

“These are provisional findings and may not necessarily lead to further enforcement action.

“A statement of objections gives firms notice that the FCA thinks they have infringed competition law and the opportunity to respond by making written and oral representations.

“The FCA will carefully consider any representations from the firms before deciding whether the law has been broken.

“The statement of objections will not be made public, however further details will be made public when a final decision is taken.”