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Lendy investors to face anti-money laundering re-validation before return of funds

  • 20/08/2019
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Lendy investors to face anti-money laundering re-validation before return of funds
Lendy investors will be put through a fresh set of anti-money laundering (AML) checks before they are able to access any of their cash, due to the provider's original process 'deficiencies.'


In the latest update to the peer-to-peer lender’s investors, administrators RSM noted that the check would be completed shortly after 30 August.

“Before the joint administrators release any funds to investors, they are required to ensure compliance with appropriate AML legislation,” they said.

“To ensure compliance with our AML obligations we will be undertaking a know your customer (KYC) and AML revalidation exercise for all investors with funds on account,” they added.

Investors are being asked to login to their accounts by 5pm on 30 August and reconfirm that personal details including address, postcode, telephone numbers, date of birth, preferred bank account and any company name are up-to-date.

The administrators noted that for some investors additional documentation may be required as part of this process, but they will be contacted after 16 September individually.


Serious questions raised

In June, it was revealed that the Financial Conduct Authority had been authorising all payments in and out of Lendy for several months.

Concerns around Lendy’s practices were further flagged by the administrators last month when they raised serious questions about AML, the transfer of ownership of the firm’s premises, and how the lender was remunerated for administering its platform and loans.

They also revealed that two thirds of the outstanding Lendy loans worth a combined £152m were in some type of formal insolvency process.

Investors are on average only expected to get around 50 per cent of their funds back, although for some, it may be as low as seven per cent.


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