Monneo, London-Based Fintech Offering Virtual IBAN Accounts, Enters Special Administration

London-headquartered fintech company Monneo, known for providing virtual IBAN accounts, has recently entered special administration as it seeks to salvage customer funds amidst insolvency. The joint special administrators appointed to handle the situation are corporate restructuring firm FRP Advisory.

Established in 2016, Monneo offers a range of ecommerce account services, including banking, cards, foreign exchange, and payouts. However, on 6 April, the company was instructed to halt all regulated payment services due to concerns that it was not meeting the conditions of its authorization.

Monneo is authorized by the Financial Conduct Authority (FCA) to provide payment services. Nevertheless, it is important to note that customer funds held by the company are not protected by the Financial Services Compensation Scheme (FSCS). Instead, Monneo was expected to comply with “safeguarding requirements,” which mandate the separation of customer funds.

According to Monneo’s most recent accounts filed on 31 March 2022, the company reported post-tax profits of £918,412 for the year, with shareholder funds valued at £5.4 million.

FRP Advisory, the appointed administrators, have pledged to provide further information to customers within eight weeks. The company has previously collaborated with various financial service firms, including cryptocurrency exchange Coinbase, enabling the payment of invoices using digital currencies.

At the time of writing, FRP Advisory had not responded to requests for comment regarding the situation.