UK watchdog says Wirecard making progress on addressing concerns

UK watchdog says Wirecard making progress on addressing concerns

"As you may have seen on the news, Wirecard AG filed for insolvency on Thursday".

The Financial Conduct Authority said on Monday Wirecard was addressing the British watchdog's concerns but its restrictions on the collapsed German payments company's services would remain for now. Customer cash will be frozen. Furthermore, the financial services regulatory body underlined that Wirecard is restricted from disposing on any assets and funds during its period of investigation.

"This is a massive issue for many customers who rely on the money placed in their U account for everyday essentials including the ability to pay rent and buy food", one customer told the BBC.

"The main point is to reassure them that their card details and their funds are still secure", Griffith said, promising a further update later on Friday. "We apologize for any inconvenience this may cause and we'll update you with more information as soon as we have it", the company added.

"This disruption is expected to last for a limited time only and we are focussed on completing this transition as quickly as possible".

While Wirecard awaits the outcome of insolvency proceedings, rumours abound that Visa and Mastercard are preparing to cut the cord with the payments processor, a move that would put the company into a tailspin from which there would be little hope of a recovery. The company, once worth over €20bn (£18bn, $22bn), collapsed after admitting to a €1.9bn hole in its balance sheet.

In its statement, the FCA underlined that its restrictions have been imposed to protect the digital funds of United Kingdom consumers during the period that Wirecard AG is being investigated for fraud charges of €1.9 billion. Former chief executive Markus Braun has been arrested by authorities in connection with the case, while the company's former chief operating officer is now being pursued by prosecutors. We have been working closely with Wirecard UK and other authorities over the past few days to take action that protects consumers. "This now means customers money can not be accessed", the regulator noted. issued a statement that read: "Our customer funds are safe".

On its website the FCA said customers should contact Wirecard or their card provider directly and warned that Wirecard was not covered by the UK's Financial Services Compensation Scheme (FSCS) - which does not compensate customers of electronic money or payment services.



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