Wirecard UK unlocks cash for customers

Beleaguered Wirecard to proceed with business after insolvency

The FCA told Wirecard to stop carrying out regulated activities in the United Kingdom, leaving thousands of United Kingdom customers with frozen accounts.

The regulator intervened and suspended Wirecard's activity last Friday following the discovery of €1.9bn missing from the firm's German parent company, Wirecard AG.

The suspension of Wirecard's United Kingdom business has been lifted by the Financial Conduct Authority allowing it to resume payment activities and meaning many United Kingdom households access to cash that had been temporarily blocked.

The FCA said written consent for Wirecard to continue providing payment services was granted on Monday and that restrictions would be lifted by Tuesday.

"With the filing of the insolvency application, Wirecard's business activities will be continued", the company said. Wirecard-issued cards operated under e money and payment services regulations and this means the funds held on them is not protected by the Financial Services Compensation Scheme (FSCS).

The UK subsidiary is still blocked from transferring its own assets and faces restrictions on where it can hold customer cash.

"The management board is of the opinion that continuation is in the best interests of the creditors", it said in a statement.

Wirecard in the United Kingdom has been obliged to hold customer funds separately from its own money under Britain's customer safeguarding rules.

The regulator said it was aware that some people "faced difficulties" over the weekend but said it had worked with the Treasury, Home Office and Department for Work and Pensions to help anyone suffering from financial distress.

An Post said today that together with Mastercard, it has been working intensively throughout the night and this morning to have currency cards operational as quickly as possible.

"An Post thanks customers for their patience and we apologise once again for the disruption and inconvenience caused", An Post stated.



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