Lendy’s administrator RSM has granted an open extension to investors who have not yet completed anti-money laundering (AML) checks.
RSM said in August 2019 that it had uncovered “certain deficiencies” in Lendy’s AML procedures so it asked investors to go through the process again before funds could be released.
Most have done this but more time has been granted for those who haven’t due to the coronavirus pandemic.
“The Lendy team will continue liaising with individuals who currently have not fulfilled the money laundering checks,” RSM said.
“Regrettably these final checks are a manual exercise, hence it will take some time to complete these processes.
“The administrators have agreed a full open extension in providing any outstanding AML certified copies of documents.
“This will eliminate the need to leave home and get documents certified until after the UK governments coronavirus restrictions have been lifted.”
Lendy’s administration period was extended by three years last month.
RSM said the process has been held back by the need to AML checks on investors and the recovery of assets is now taking longer due to the coronavirus outbreak.
There is also the prospect of legal action regarding how payments are distributed.