Bank Negara: Funds due to merchants separated from Wirecard MY own funds


  • Banking
  • Friday, 03 Jul 2020

The central bank said on Friday funds due to merchants are held in segregated bank accounts with licensed banking institutions in Malaysia which are not commingled with Wirecard MY’s own operational funds.

KUALA LUMPUR: Bank Negara Malaysia is closely monitoring the operations of Wirecard Payment Solutions Malaysia Sdn Bhd (Wirecard MY) to ensure the latter will continue to fully meet its settlement obligations to merchants in Malaysia.

The central bank said on Friday funds due to merchants are held in segregated bank accounts with licensed banking institutions in Malaysia which are not commingled with Wirecard MY’s own operational funds.

It issued the statement after Wirecard AG filed for insolvency proceedings in Germany while Wirecard MY is assessing its position and business operations in light of the developments at its parent company.

Wirecard MY is a registered entity that carries out merchant acquiring services under section 17 of the Financial Services Act 2013.

Wirecard MY’s primary activities in Malaysia is to process card payments for merchants.

“Wirecard MY has also been required to take measures in coordination with card network operators to ensure uninterrupted settlement of payments to merchants and to facilitate the smooth transfer of payment services to alternate providers should the need arise.

“Bank Negara Malaysia would like to assure the public that the payment system remains safe and sound, and that it continues to function smoothly, ” it said.

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