The Financial Conduct Authority (FCA) has alleged that three Glaswegian money transfer firms engaged in price fixing.
In a statement of objections issued today, it listed Dollar East (International Travel & Money Transfer), Hafiz Bros Travel & Money Transfer, and LCC Trans-Sending (including its parent company Small World Financial Services Group) trading as Small World, as the companies fixing prices charged to customers in Glasgow for transferring money from the UK to Pakistan.
It is the regulator's view that, for a period in 2017, the three firms coordinated on the exchange rate offered to consumers for converting UK Pounds into Pakistan Rupees - 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.
The FCA noted that these are provisional findings and may not necessarily lead to further enforcement action.
A statement of objections gives firms notice that the watchdog thinks the companies have infringed competition law, but gives the opportunity to respond by making written and oral representations.
The FCA will 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.
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