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Plus500 shares slide as client accounts frozen

Published: 15:35 18 May 2015 BST

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In an online statement, the FX and CFD (contract for difference) specialist said that it has a "regulatory obligation to comply with the UK Money Laundering Regulations 2007”.

Israel-based spread betting firm Plus500 (LON:PLUS) shed a third of its value as it  suspended some UK client accounts over money laundering fears.

In an online statement, the FX and CFD (contract for difference) specialist said that it has a "regulatory obligation to comply with the UK Money Laundering Regulations 2007”.

This requires it – among other things - to identify and verify its customers, the nature and purpose of the business relationship and source of funds.

“Until the review has been satisfactorily carried out, you will be unable to open any new trades on your account, deposit or withdraw funds,” the firm said.

Set up in 2008, Plus500 previously said it uses companies such as credit checker Experian to provide automatic online ID verification during the signing up process. 

Several sector peers, like IG Group and City Index, request copies of passports and bank statements and claim their application process can be completed in a few minutes with forms processed in a matter of hours.

Plus500 has been a standout AIM performer since making its stock market debut in July 2013 at 120p a share.

However, shares were 30% lower in afternoon deals at 511p and the firm issued a statement following the price falls late on Monday.

“Shareholders should note that Plus500's UK subsidiary, Plus500UK, has in recent weeks been implementing certain enhanced client on boarding and Anti-Money Laundering (AML) processes which have resulted in additional documentation checks being required on existing and new Plus500UK customer accounts.

“This has led to an increased volume of documentation being reviewed by our client onboarding team, and some Plus500UK customers are currently experiencing delays in receiving the necessary approval to open new accounts, and new trades on their existing accounts and / or withdraw monies.”


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