The Financial Conduct Authority ( FCA) of the United Kingdom imposed a series of limitations on bankrupt Wirecard AG, following the decision of the digital payment processing company to file for insolvency on its German home market.
The FCA released a regulatory notice claiming that Wirecard UK can not conduct any controlled market operations any longer. In addition , the financial services regulatory body emphasised that during its investigation time Wirecard is prohibited from disposing of any assets and funds.
Wirecard UK has been advised to inform customers of its services and customer partners of the FCA ‘s requirements, stating that it will no longer operate UK regulated e-money and payment processing services.
The FCA underlined in its statement that its restrictions were put on protecting UK consumers’ digital funds during the time that Wirecard AG is being prosecuted for €1.9 billion in fraud charges.
At the behest of their orders, Wirecard UK will be allowed to accept fund withdrawals from its consumers , retailers and clients, with FCA overseeing transaction.
Further advice has been released by the FCA for Wirecard clients who have stored funds with the company’s ‘agents’ based in the European Economic Area ( EEA) and outside. The FCA said assets under the Financial Services Compensation Scheme (FSCS) would not be covered with Wirecard agents.
Wirecard AG filed for insolvency to German courts for a frenzied week following the admission of the company’s board and executive team to falsify €1.9 billion in corporate accounts mainly connected with Asian business operations.
The news comes just days after the arrest of Markus Braun, the former chief executive of the multinational payment processing company, on allegations of corruption, fraud and mismanagement by the executive.
Wirecard was founded in 1998 and has developed one of the most robust payment processing networks for igaming and sports betting services, used by a range of tier-1 operators across regulated European markets.