The problems of European FinTechs with regulatory authorities are currently almost endless. Now the Australian iSignthis also seems to have problems with AML. At least its Cyprus-based subsidiary iSignthis eMoney Ltd, an e-Money Institution regulated by the Central Bank of Cypris is currently suspended in the VISA network because of AML problems. Allegedly only a formal error says CEO John Karantzis.
Founded in 2013 as a software provider by John Karantzis (LinkedIn profile), the iSignthis Group today positions itself as a FinTech and RechTech solution provider. The many subsidiaries in different jurisdictions with different purposes makes it a rather non-transparent group.
iSignthis is a Principal Member of VISA and other credit card networks. To what extent the entry of the suspension on the VISA side also affects the partnership between VISA and iSignthis eMoney Ltd (d/b/a Flykk and ISXPay) is not yet clear. A suspension notice on the VISA Global Registry of Service Providers reports iSignthis eMoney Ltd in Cypurs as “suspended by AML.”
According to a Twitter message from CEO Karantzis, the VISA supension is a formal error. One would have forgotten to send the PCI DSS certificate to VISA.
In the relevant Twitter threat, a further participant highlighted the fact that VISA’s reasons for suspending ISX may also be the investigations of the Australian ASX as well as derogative media reports on the company.
It is currently not clear whether the missing certificate is actually the reason for the VISA suspension and/or the ASX investigations and/or the negative media coverage of the company. The situation surrounding the regulatory and stock exchange problems of iSignthis is currently not very encouraging. The FinTelegram Research Team will gather and report additional information.
