Release Date: 30th November 2023
To access the original FCA document, click here.
Summary
The Financial Conduct Authority (FCA) has fined Dollar East (International Travel & Money Transfer) Ltd, Hafiz Bros Travel & Money Transfer Limited, and LCC Trans-Sending Limited (trading as Small World) along with its parent company Small World Financial Services Group Limited for violating the Chapter I prohibition of the Competition Act 1998. This decision follows an investigation into the firms’ anti-competitive practices in the UK to Pakistan remittance market in Glasgow from 18 February 2017 to 31 May 2017.
Summary of FCA Actions:
- Entities Fined:
- Dollar East (International Travel & Money Transfer) Ltd: £3,600
- Hafiz Bros Travel & Money Transfer Limited: £11,200
- Small World and its parent company Small World Financial Services Group Limited: £139,500
- Reason for Fines: The firms engaged in a coordinated effort to control the pricing of remittance services by:
- Fixing retail exchange rates for UK to Pakistan money transfers.
- Setting transaction fees at a uniform £5 per transaction.
These practices aimed to prevent competition and maintain higher prices, restricting consumer choice and competition in the market.
Key Takeaways for Other Firms:
- Avoid price-fixing agreements: Firms should independently set their pricing strategies to avoid illegal coordination that distorts competition.
- Monitor and ensure compliance: Regular internal audits and compliance training can help detect and prevent anti-competitive practices.
- Transparent operations: Engage in transparent business practices and avoid any concerted efforts with competitors that could harm market competition.
- Prompt action on complaints: Address internal concerns about potential anti-competitive behaviour swiftly and effectively to mitigate risks.
Conclusion:
The FCA’s fines highlight the serious consequences of engaging in anti-competitive practices. Firms must operate within the law, fostering healthy competition to benefit consumers. This case serves as a reminder of the importance of maintaining compliance with competition regulations.
