mBank will be sued. The money changer goes to war

Customers exchanging currencies through the online currency exchange office Cinkciarz.pl have recently had problems. Transactions have been delayed for several weeks. Cinkciarz accused mBank and Bank PBS of obstructing the operation. On the other hand, he had to take a blow from the Polish Financial Supervision Authority.

The Polish Financial Supervision Authority withdraws the authorization of part of Cinkciarz.pl

The Polish Financial Supervision Authority withdrew the authorization to provide payment services by Conotoxia from Zielona Góra. Thus, the company from Zielona Góra ceased to be a National Paying Institution. Conotoxia belongs to the Cinkciarz.pl group and is its “financial arm”. The group announced that it will cooperate with the Polish Financial Supervision Authority to get its business back on track as soon as possible.

According to the Commission, Conotoxia does not provide the sufficiently stable and prudent business management required of a payment institution. The Polish Financial Supervision Authority does not rule out that the group’s entities traded clients’ money between transactions.

The exchange accuses banks of collusion

Conotoxia and Conotoxia accused the banking sector of collusion. Specifically, it concerns mBank and Bank PBS. The Cinkciarz.pl Group is demanding PLN 1 billion and PLN 500 million in compensation from two entities, respectively. Why such high claims? The trader either has solid grounds to make such high claims… or he is acting out of desperation.

Conotoxia is planning a lawsuit against mBank SA because the bank allegedly hindered access to the market, which can be read in the press statement. Even though the company is fully covered by its own funds, the banks refused to provide it with a guarantee. mBank was allegedly aware that obtaining a bank guarantee was one of the Polish Financial Supervision Authority’s recommendations for Conotoxia to regain the Polish Financial Supervision Authority’s authorization to provide payment services. Apparently, mBank has introduced an internal, total ban on financing Conotoxia’s activities. According to the authorities of the Cinkciarz.pl group, this hinders access to the market, which proves unfair competition by one of the largest banks on the Polish market. This also harms customers.

Bank Polskiej Spółdzielczości will receive a lawsuit from Cinkciarz. This time the reason is the alleged obstruction of currency exchange office activities. Specifically, Bank PBS prevented Cinkciarz from making return transfers to customer accounts. This would be the result of actions initiated on September 26 and – at least according to Cinkciarz – indicating collusion of banks against the company. Evidence in the case, including screenshots of banking systems, has been secured and will be submitted together with the lawsuit. Moreover, Cinkciarz.pl points out that due to delays in transactions, it loses customers and its good name.

Conotoxia Ltd., which offers financial services outside Poland and international money transfers, also has problems. Her bank accounts were allegedly illegally blocked by mBank. This prevented clients from using their own funds and the company itself from conducting financial operations with clients. As a result, the company was unable to fulfill its statutory obligation – to pay out funds within 24 hours. The company was forced to use the services of foreign banks and incurred huge costs. Conotoxia Ltd. announces a demand for another half a billion in compensation.

Conotoxia also announced that it would seek assistance from the Office of Competition and Consumer Protection and other authorities. Cinkciarz.pl also expects a reaction from the Office of Competition and Consumer Protection, as well as support from the Polish Financial Supervision Authority. Conotoxia Ltd. intends to submit a report to the prosecutor’s office. At the time of this article’s publication, the lawsuits had not yet been filed.