What is safeguarding?
The safeguarding of customers’ funds is a process through which Moneff protects your funds by keeping them separate from our own operational capital. This is a regulatory requirement since Moneff operates as an authorized Electronic Money Institution.
The ultimate purpose of safeguarding protection
In the unlikely event that we become insolvent, your funds will be kept safe by being held on a specifically designated segregated safeguarding accounts with authorised credit institutions or covered by an insurance policy from an authorised insurer, or safeguarded in any other way permitted under the UK PSRs and EMRs (e.g. secure assets held with custodians).
This is done to ensure that client funds are kept in a way that they do not commingle (mix) with the Moneff’s own funds. Client funds held on these segregated accounts cannot be affected by liquidating nor be touched by administrators. Client funds are also separated and protected against the claims of any of Moneff’s creditors. By taking the above-stated measures, Moneff provides assurance that it will not use customer funds to pay its own debts to meet obligations, and in the event of the Moneff’s insolvency, they will be used to repay customers in accordance with the insolvency process.
Client funds are also protected from any interest in, recourse against, or right of set-off from the authorised credit institution (bank) where Moneff holds Client funds.
Timeline
Safeguarding starts on immediately receiving your funds and issuing electronic money to you in exchange for them (except in the case of incoming card payments which, under the relevant provisions, may take up to 5 days for safeguarding to start). Safeguarding continues until you spend, otherwise use or withdraw (redeem) your electronic money.
Customer funds must remain safeguarded at all times and are subject to periodic reconciliations. A reconciliation is a process where the amounts of customer funds held with the safeguarding providers (e.g. banks and custodians) are compared between Moneff’s records and those of its safeguarding providers to ensure the amounts match without discrepancies.
Safeguarding and Financial Services Compensation Scheme (FSCS) and similar schemes
Moneff Account is not a bank account. The funds held in Moneff Account do not constitute deposits and do not earn any interest.
It is important to note that since Moneff Account is not a bank account, the United Kingdom’s Financial Services Compensation Scheme (FSCS) or similar local schemes in EU countries DO NOT apply to funds in your Moneff Account.
Instead, Moneff protects your funds by safeguarding them, as explained above. In contrast to the limits usually placed on the protection of traditional bank accounts through relevant schemes (e.g. FSCS in the UK), such limits do not apply to the funds in your Moneff Account. In other words, safeguarding does not set a limit on customer funds protection.
Independent checks
Customers are encouraged to check the FCA website to find guidance in deciding whether the level of protection Moneff offers is appropriate in their circumstances (current at the date these Terms and Conditions are published, available at: https://www.fca.org.uk/consumers/using-payment-service-providers).
Further questions
If you are unclear as to our safeguarding of customer funds, you may consult our website for further information, for example, in the FAQ section, our Terms and Conditions or contact Moneff Customer Support.