HOW WE PROTECT YOUR MONEY
As an authorised electronic money institution, we are required to take certain steps to protect your money. This process is known as “safeguarding”. Protecting your money is our highest priority, so it’s important to us that you are aware of how we do this.
WHAT IS ELECTRONIC MONEY?
When you transfer money to our bank account, we credit your account with electronic money (also known as e-money). You can then use this electronic money to perform currency conversions or make payments.
HOW DO WE PROTECT YOUR MONEY?
The account you hold with us is an electronic money account rather than a bank account and this means that your money is not protected by any compensation or guarantee scheme (such as the Financial Services Compensation Scheme in the UK and the Deposit Guarantee Scheme or the Investor Compensation Scheme in Ireland). We do not use your money for our own business purposes nor do we lend it to other customers.
Instead, when we credit your account with electronic money, we either:
- Keep an equivalent amount of money completely separate from our own money and place it in a segregated account with mainstream banks; or
- Cover it with an insurance policy which provides you with equivalent protection.
Each year, we appoint an external expert to carry out an independent audit on how we comply with safeguarding requirements.
WHAT WOULD HAPPEN IF LUMON BECAME INSOLVENT?
In the unlikely event of our business becoming insolvent, your money would be safeguarded and would be protected from the claims of third parties. An insolvency practitioner would be appointed to return your money to you, less any administration costs for doing so.
WHERE YOU CAN FIND OUT FURTHER INFORMATION
Our Terms and Conditions, available here, contain further detail about how we protect your money.
ANTI-MONEY LAUNDERING AND SANCTIONS
We take our regulatory responsibilities extremely seriously and have several policies, which include anti-money laundering and sanction screening.
As a result, we cannot receive funds from, or send payments to, the following countries:
Crimea, Cuba, Iran, Libya, North Korea, South Sudan, Sudan, Syria
In some cases, for your identification purposes, once you have signed up, we may need some documents from you to prove your identity and address (such as a copy of a passport and a recent utility bill). We can accept a clear photographic image or scan of these documents.
We may also require some additional information or documents, such as documentation evidencing your source of funds, source of wealth or the reason why you are performing a transaction. We’ll let you know whenever you need to provide us with additional documents, but examples of acceptable documents could include bank statements, payslips or a completion statement for a recent property sale.
As part of our ongoing efforts to mitigate the risk of money laundering & terrorist financing we also have restrictions on the types of businesses, activities and countries we can support.
US, MEXICAN AND QUEBEC RESIDENTS
Due to licencing requirements we are currently unable to service individuals or businesses resident in the US, Mexico or Quebec, Canada. If you are unsure about how this affects you please call us on +44 (0)203 384 7280.