- Finablr, which owns some of the world’s leading travel money and cross-border payments brands, was told by HMRC that some of its registrations would be suspended.
- Finablr said that it intended to work alongside the UK government body to resolve the problems.
- It came on the same day as the resignation of a senior figure at the firm, which is based in the United Arab Emirates.
One of the world’s largest holding companies for international money transfer brands has announced that it will work with a British government department to resolve a dispute.
Finablr, which is based in the United Arab Emirates and is listed on the London Stock Exchange, said that it was told by a UK-based authority that two of its brands were about to have their business registrations suspended.
The company said that it would work alongside Her Majesty’s Revenue and Customs (HMRC) to ensure that its brands can resume or continue doing business.
The two brands affected are Xpress Money Services Limited (XMSL) and UAE Exchange UK Limited (UAEExUKL).
In the case of UAEExUKL, the suspension was described as not yet in place and is instead believed to be a mere proposal.
However, in XMSL’s case, the decision has already been made, and the brand’s registration is currently suspended.
It is understood that the firm cannot currently trade.
The authority behind the suspension is HMRC, which is the British government’s tax collection arm.
In a short statement published on the website of the London Stock Exchange, Finablr said that it planned to fight back against the decision.
“The Company intends to work with HMRC to attempt to restore the registrations,” it said.
It also warned that if the registrations were not lifted, then the brands in question may not be able to operate as normal.
“Suspension of business registration would result in cessation of business by the relevant entities unless and until the suspension is lifted,” it added.
In a further twist, the company revealed that its director and co-chairman, Dr. B. R. Shetty, would be stepping down from his role right away.
“The Company announces that Dr. B R Shetty has resigned as a Director and Co-Chairman with immediate effect,” it said in a further submission to the Exchange.
Finablr has been hit by various problems recently, though a number of steps have been taken to address the issues raised.
A law firm named Skadden Arps Slate Meagher & Flom was appointed last month to investigate a range of allegedly fraudulent activities within the firm.
It came after the firm’s independent financial adviser, Houlihan Lokey, quit earlier in the year.
Trading in the firm’s shares on the London Stock Exchange is currently suspended.
This happened at the same time as a number of management changes.
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