Quickbit Limited, authorized by the Gibraltar Financial Services Commission (GFSC) as a Virtual Asset Arrangement Provider, is facing serious repercussions for violating the Proceeds of Crime Act.
The GFSC, after conducting a comprehensive investigation and an onsite visit in February 2023, has taken decisive actions against Quickbit for multiple breaches in crucial areas of customer due diligence.
The GFSC’s Anti-Money Laundering and Counter Financing of Terrorism Supervision Team conducted an extensive onsite examination at Quickbit in February 2023.
The investigation uncovered various regulatory violations, including deficiencies in applying Customer Due Diligence Measures (CDD), delayed verification, insufficient Enhanced CDD, handling of Politically Exposed Persons, and Risk Assessment.
Despite these shortcomings being identified during the onsite visit, Quickbit failed to take adequate corrective actions, leading to an escalation of regulatory measures against the company.
The GFSC has issued an official Decision Notice, resulting in the cancellation of Quickbit’s registration under the Regulation of the Proceeds of Crime Act. This decisive step by the GFSC highlights the gravity of the identified breaches.
The registration cancellation effectively hampers Quickbit’s ability to continue operating as a Virtual Asset Arrangement Provider.
This regulatory action carries immediate and far-reaching consequences, affecting Quickbit’s reputation in the financial industry and potentially straining its relationships with clients and stakeholders.
In a subsequent update, Quickbit disclosed the conclusion of the GFSC’s investigation into its subsidiary.
While the investigation led to the revocation of Quickbit’s local registration in Gibraltar, the company is relieved to report that the GFSC will not impose any fines.
This announcement follows Quickbit’s earlier revelation that its subsidiary in Gibraltar was under scrutiny for deficiencies in customer knowledge processes, primarily concerning operations conducted prior to 2023. While fines were anticipated, the GFSC’s decision has spared Quickbit from such penalties.
It’s worth noting that Quickbit has not actively operated in Gibraltar since the start of 2023.
Additionally, the parent company’s board made a strategic decision in the spring of that year to close down the business and the Gibraltar subsidiary due to a lack of operational and strategic advantages in that jurisdiction.
As a result, the GFSC’s decision to revoke the local registration does not impact Quickbit’s ongoing operations.
Daniel Sonesson, the CEO of Quickbit, expressed his relief, saying, “The investigation in Gibraltar consumed a significant amount of resources throughout much of the year and delayed our process of shutting down the subsidiary.
I am pleased and relieved with today’s decision, which allows us to move forward with full focus. I am also proud of the team that handled the matter with expertise, securing the best possible outcome for the group.”