The Bank of London has received a winding-up order from UK tax authorities due to unpaid bills, shortly after founder Anthony Watson stepped down as CEO. Watson transitioned to a new role as founder and advisor last week, paving the way for Stephen Bell, the former chief risk and compliance officer, to take over as CEO.
The winding-up petition was filed by Her Majesty’s Revenue and Customs just two days after Watson’s departure. This legal process is employed by HMRC against companies that have failed to pay tax bills more than 21 days after receiving a statutory demand, which could lead to the forced sale of their assets.
The Bank of London claims that the missed payment was a result of an “administrative error” and emphasizes that Watson’s resignation was unrelated to this issue. Following a series of unsettling developments and concerns regarding its governance, the bank announced on Sunday that it had successfully raised £42 million in new capital through a funding round led by Mangrove Capital Partners. The Bank insists that this funding, secured in August, is unrelated to HMRC’s winding-up order and that all owed taxes have been paid in full.
Mark Tluszcz, CEO of Mangrove Capital Partners, stated, “The Bank of London’s ability to close an over-subscribed £42 million funding round speaks to the confidence investors have in its leadership and unique model.”
The Bank of London operates in three key areas: competing with established banks in clearing and settlement services, providing transactional banking services for corporations, and offering a banking-as-a-service platform for companies seeking to integrate payment solutions into their products. Since its public launch in 2021, the loss-making bank has onboarded 4,500 businesses and accumulated £500 million in client deposits.