We are aware that some financial services firms in the UK use payment processing services provided by companies that are part of the PacNet Group.
Following a decision by the United States Department of the Treasury[1] to designate the PacNet Group as a ‘significant transnational criminal organisation’, we understand that the ceasing of PacNet Group firms’ operations has led to some customer payments, including direct debits, not reaching creditors and firms.
Firms affected by this should assess their payment arrangements and take any appropriate action.
We expect firms to ensure that customers are not penalised or treated unfairly for a situation that they are not responsible for and that is out of their control. For example, we would encourage firms to communicate clearly with their impacted customers about what action, if any, they need to take, and for firms to review any late fees and penalties imposed in relation to failed payments resulting from an interruption in services provided by PacNet Group companies.
Two firms within the PacNet Group – PacNet Services Ltd and UK Counting House Ltd – are authorised by us as payment institutions.
We are considering what action may be appropriate and are in contact with the regulated firms to understand and assess the implications that this action will have for firms and consumers. We are not involved in the Department of the Treasury’s action against PacNet Group.