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The Financial Conduct Authority killed Bazar Money Transfer Limited’s regulated payment services on November 21, 2025. BMTL couldn’t meet basic registration requirements for small payment institutions, so regulators pulled the plug to protect consumers from potential losses.
The company can’t send money for retail customers or corporate clients anymore. That’s a big problem for people who relied on BMTL for international transfers and business payments. The FCA’s Second Supervisory Notice from March 6, 2026, made it clear these restrictions aren’t going away anytime soon. Customers who sent money through BMTL but didn’t see it arrive need to contact the FCA’s Supervision Hub directly. There’s no other way to get help right now.
What Went Wrong
BMTL failed pretty much every compliance test the FCA threw at them. The firm couldn’t prove it had proper anti-money laundering controls in place. It also didn’t show adequate protection for customer funds, which is basically Payment Services 101.
But there’s more. BMTL was offering cryptoasset services without proper registration, which is illegal in the UK. The company never registered under the Money Laundering Regulations, yet it was handling crypto transactions anyway. That’s a massive red flag for regulators who’ve been cracking down on unauthorized crypto operations since 2020.
The FCA oversees anti-money laundering and counter-terrorist financing compliance among all UK cryptoasset businesses. BMTL wasn’t on that list.
Not good.
The restrictions hit both sides of BMTL’s business hard. Retail customers can’t send money to family overseas anymore. Corporate clients lost their payment processing partner overnight. Some businesses probably scrambled to find new providers within days of the November shutdown.
Customer Impact and Next Steps
People with money stuck in the BMTL system face a messy situation. The FCA’s Supervision Hub is handling complaints, but there’s no guarantee customers will recover their funds quickly. Or at all, really. This echoes themes explored in China Orders Banks to Adopt Blockchain, underscoring the shifting landscape.
The regulator keeps telling people to check the Financial Services Register before picking a new money transfer company. That’s smart advice, considering how many unauthorized firms operate in this space. Firms offering cryptoasset exchange or custodian wallet services in the UK must have FCA registration – no exceptions.
BMTL hasn’t said a word publicly about the restrictions or any plans to fix things. The company’s website still shows old contact information, but customer service lines don’t work anymore. Reached for comment, BMTL didn’t respond to multiple requests.
As of April 8, 2026, the company remains completely shut out of regulated payment activities. The FCA hasn’t given any timeline for when BMTL might reapply for authorization. Sources close to the regulator say the compliance issues were “severe” and will take significant time to address.
Chief Executive Nikhil Rathi previously warned about the importance of regulatory compliance in maintaining market integrity. His team clearly meant business with BMTL. The enforcement action sends a message to other payment firms that might be cutting corners on compliance requirements.
Some industry watchers think BMTL’s problems go deeper than basic compliance failures. The firm’s rapid expansion into crypto services without proper authorization suggests management didn’t understand UK financial regulations. That’s not something you fix overnight.
The FCA’s decision reflects broader enforcement trends across the financial sector. Regulators have been especially tough on firms mixing traditional payment services with cryptocurrency operations. Many companies struggle to navigate the complex regulatory requirements for both areas. Market participants tracking Bitcoin Hovers Near 0K Mark as will find additional context here.
BMTL’s situation leaves hundreds of customers in limbo while the company figures out its next move.
The payment services sector has seen a wave of similar enforcement actions in recent months. Three other money transfer firms lost their authorizations between September and December 2025, according to FCA records. Regulators are particularly focused on companies that expanded too quickly without building proper compliance infrastructure first. The pattern is becoming clear – firms that try to offer multiple financial services without adequate controls face swift regulatory action.
Industry data shows unauthorized payment firms cost UK consumers over £45 million in 2024 through failed transfers and compliance failures. The Association of Foreign Exchange and Payment Companies warned its members in October that regulatory scrutiny would intensify heading into 2025. BMTL’s shutdown validates those predictions. Meanwhile, legitimate competitors like Wise and Remitly have gained market share as customers flee unregulated providers. The competitive landscape is reshaping around firms that prioritize compliance over rapid expansion.
Frequently Asked Questions
When did the FCA restrict Bazar Money Transfer Limited?
The FCA imposed restrictions on November 21, 2025, and confirmed their continuation through a Second Supervisory Notice on March 6, 2026.
Can customers still use BMTL for money transfers?
No, BMTL cannot provide any regulated payment services to retail or corporate clients under current FCA restrictions.
