Wirecard unlocks payments while Germany, Mauritius investigate fraud
Wirecard, the Germany-based payments company that filed for insolvency last week, has persuaded regulators to unlock frozen customer funds as it faces multiple fraud investigations.
The stricken firm has agreed to keep customer funds with banks in Singapore under the direction from Monetary Authority of Singapore (MAS). MAS in its press release said that it is closely monitoring the operations of Wirecard.
After freezing customer accounts the previous week, The Financial Conduct Authority (FCA) in the UK has said that Wirecard can resume regulated activity which is issuing e-money and providing payments service.
“The FCA has been working closely with Wirecard and other authorities to ensure that the firm was able to meet the conditions required to lift certain requirements that we imposed on it. We know that some customers have faced difficulties over the weekend but the steps we took were the right ones to protect everyone’s money.” the FCA said.
Meanwhile the Bank of Mauritius and Mauritius Financial Services Commission have issued a joint press release stating that they will conduct a joint investigation over alleged round-tripping linked to Wirecard AG. Both Bank of Mauritius and FSC said, “(They) are determined to bring to light any possible breach of regulatory requirements, including Anti-Money Laundering/Combating the Financing of Terrorism regulations.”
Back in Europe, Wirecard AG’s headquarters in Munich and four properties in Germany and Austria were raided by the police and public prosecutors as the investigation for the fraud gets broad. The creditors’ committee, which was appointed by the Munich Local Court on 1st July, has unanimously confirmed Dr. jur. Michael Jaffé as the preliminary insolvency administrator of Wirecard AG.
“A large number of investors from all over the world have already contacted us who are interested in acquiring the core business or the independent and successfully operative business divisions,” said the preliminary insolvency administrator Dr. jur. Michael Jaffé.
In separate news from another part of the world, Wirecard North America is seeking an acquisition. Wirecard North America inc is a separate legal entity from Wirecard AG, which it acquired in 2016.
“Wirecard North America continues to operate without any disruption to clients and cardholders. The strong, independent cash flow and financial position of Wirecard North America allow us to operate the business on a completely standalone basis,” said Seth Brennan, Managing Director of Wirecard North America.