How do I check that a UK money transfer company is properly authorised and keeps customers' money safe?

Here’s a practical check-list:

1. Find the legal company name. A transfer service’s brand may differ from the company on the FCA register. Look in its website footer and terms for the operator’s legal name and FCA Firm Reference Number (FRN). (fca.org.uk)

1. Check it on the FCA Firm Checker or Financial Services Register. Make sure the exact legal entity is currently authorised or registered, and that its permissions cover the service you plan to use—such as sending money abroad. Check the listed website, phone number and address against the ones you’re using; scammers sometimes impersonate real firms. Also check for warnings or restrictions. (fca.org.uk)

1. Understand what its status means for your money. Many money-transfer firms are authorised payment institutions (APIs) or e-money institutions (EMIs) rather than banks. APIs and EMIs must generally safeguard relevant customer funds—by keeping them separate from the firm’s own money, or using qualifying insurance or a guarantee. But safeguarding is not the same as FSCS deposit protection: the FCA says APIs, EMIs and small payment institutions are not covered by the FSCS. Small payment institutions (SPIs) are not required to safeguard funds. (fca.org.uk)

1. Ask how safeguarding works. Ask whether your funds are safeguarded, how (segregated account, insurance or guarantee), and when funds are protected—for example, while a transfer is pending. Check the provider’s terms for what happens if it fails. FCA registration alone doesn’t guarantee that you’ll get your money back quickly or in full if the firm becomes insolvent. (fca.org.uk)

1. Know where to complain. If something goes wrong, complain to the provider first. The FCA says customers of APIs, EMIs and SPIs can take complaints to the Financial Ombudsman Service; if the provider fails, customers generally need to contact its administrator or liquidator. (fca.org.uk)

Bottom line: verify the exact company and its permissions on the FCA register, don’t rely on a badge or FRN shown on the company’s own site, and don’t assume “authorised” means your balance has FSCS protection.

Step 1: Check the FCA Register

Go to register.fca.org.uk and search for the firm's legal name or its Firm Reference Number (FRN), which is usually in the website footer or terms. Search by the legal entity name, since trading names can differ. The status should say 'Authorised' or 'Registered'. If it says 'No longer authorised', 'Cancelled', or 'Revoked', do not use the provider.

Step 2: Prefer "Authorised" over "Registered"

To be FCA registered, the company only needs to show the FCA that it is based in the UK and that none of its managers have been convicted of financial crimes. Registered status is a much weaker level of protection, so an authorised firm is the safer choice. Some firms are registered only for anti-money-laundering purposes and not to provide protected payment services, which is very common with crypto companies.

Step 3: Check the permissions and conditions

Open the firm's full record. Look for 'Payment services' or 'Electronic money services' in the firm's permissions. This confirms they are authorised to handle money transfers. Also check whether the FCA has placed conditions on the firm's authorisation, which are listed on the firm's record.

Step 4: If the firm isn't listed

A missing listing isn't always proof of fraud. If you can't find it on the register, it doesn't necessarily mean it's operating illegally. It may just be based elsewhere. Be cautious either way. Firms that claim to be "FCA-approved" without appearing on the register as authorised or registered are a warning sign. You can call the FCA consumer helpline on 0800 111 6768 to ask.

Step 5: Understand how your money is safeguarded

Authorised firms must keep customers' money separate from their own. The most common method is segregation: the firm holds relevant funds in a dedicated account with an authorised bank or the Bank of England, or invests them in secure, liquid, FCA-approved assets held with an authorised custodian. The other permitted route is insurance or a comparable guarantee. The aim is that if the firm fails, customers get their money back. This aims to make sure that if a payments firm fails, consumers receive back the value of their payment or e-money as whole, and as quickly, as possible.

Note that the FSCS deposit scheme usually doesn't cover transfers. Money transfers are NOT covered by the FSCS £85,000 guarantee (that figure has since risen to £120,000 for bank deposits, so check current details). A failed firm may also not repay everything in full. For unresolved complaints, the Financial Ombudsman Service may help.

Step 6: Ask the firm directly

Reputable firms are open about this. Ask which safeguarding method they use, which bank or custodian holds customer funds, and whether they have an independent safeguarding audit. The FCA has tightened the rules: amending the rules so that reconciliations are not required on weekends and bank holidays is one example, and safeguarding audits are being extended, so firms should be able to explain their arrangements.

Quick checklist

• Found on the FCA Register under the legal name or FRN
• Status is "Authorised", not just "Registered"
• Payment services or e-money permissions are listed
• No restrictions, cancellations, or enforcement warnings
• Firm can explain how customer funds are safeguarded

To check that a UK money transfer company is legitimate and keeps your money safe, you should verify its status on the official Financial Conduct Authority (FCA) register and understand how "safeguarding" works.

1. Check the FCA Register

Before using any money transfer service, you must verify that the company is authorised or registered by the FCA.

• Visit the official site: Go to the Financial Services Register.
• Search by name or reference number: Enter the company name as it appears in their terms and conditions (not just their trading or app name, as these can differ).
• Verify their permissions: Check the firm’s details to ensure they have the correct permissions to provide "payment services" or "e-money services."
• Use official contact details: Only use the website, phone number, or address listed on the FCA register. Scammers often clone legitimate company details; checking the register helps you ensure you are dealing with the genuine firm.

Important Note: Being "FCA authorised" is generally a higher level of regulation than being "FCA registered" (such as a Small Payment Institution). Always prioritize using fully authorised firms if possible.

2. How Your Money is Kept Safe (Safeguarding)

It is a common misconception that all money held by payment firms is covered by the Financial Services Compensation Scheme (FSCS). Most money transfer companies are not banks, meaning your funds are typically NOT protected by the £85,000 FSCS guarantee.

Instead, these companies are required to "safeguard" your money. This is a regulatory requirement designed to ensure that if the company goes out of business, your money can be returned to you. They must do this by:

• Segregation: Keeping your money in a separate "safeguarding" account at an authorised bank, completely separate from the company’s own operating funds.
• Insurance/Guarantee: Alternatively, some firms may use an insurance policy or a comparable guarantee from an authorised insurer or bank to cover customer funds.

3. Key Differences to Keep in Mind

• Banks vs. Payment/E-money Institutions: If your provider is a traditional bank, your deposits are likely covered by the FSCS up to £120,000 (as of December 2025). If your provider is a payment or e-money institution, your money is protected by safeguarding rather than the FSCS.
• Terms and Conditions: Always check the legal entity named in the provider's terms and conditions. If a brand name (like an app) is different from the legal entity holding the money, look up that specific legal entity (e.g., "X Ltd") on the FCA register.
• Be Alert for Scams: If an offer sounds too good to be true, it likely is. Only deal with firms that are explicitly listed on the FCA register. If you are contacted unexpectedly, be extremely cautious, as this is a common sign of a scam.

By verifying the company on the FCA register and understanding that their safety mechanism is "safeguarding" rather than FSCS protection, you can make a more informed and secure decision when transferring money.

Before sending money, check both the company’s regulatory status and what “keeping your money safe” actually means.

1. Look it up on the FCA Firm Checker or Financial Services Register. Search for the company yourself, then confirm it is authorised or registered for the specific service you want—such as money transfers or e-money. Don’t rely on a link or registration number supplied by the company. ¹³

1. Match the details exactly. Check the website, phone number, address and firm reference number against the FCA listing. Scammers sometimes impersonate authorised firms, so a genuine firm’s name or reference number alone is not enough. If the details don’t match, don’t send money; contact the FCA using its published details. ²

1. Check how the firm protects funds. Non-bank payment and e-money firms generally must safeguard customer funds by separating them from the firm’s own money, or by using insurance or a comparable guarantee. You can ask the firm which method it uses, when funds are safeguarded, and what happens if it fails. ³⁴

1. Understand the limits. Safeguarding is not the same as FSCS deposit protection. Funds held with a non-bank payment provider are not covered by the FSCS, and if the firm fails, getting money back may take time and you might not recover the full amount. A bank account may have FSCS protection if the bank and deposit are eligible. ³⁹

1. Check complaints and warning signs. The FCA record can show relevant regulatory information, and the FCA publishes warnings about unauthorised firms and clones. Be wary of pressure to act quickly, unusual payment instructions, or a firm that avoids clear answers about its authorisation and safeguarding. ¹⁵

Rule of thumb: Verify the firm independently, confirm it has permission for the service, and don’t treat “safeguarded” as a guarantee that your money is instantly or fully protected. ¹³