BNM closely monitoring Wirecard MY's operations

  • Banking
  • Friday, 03 Jul 2020

FILE PHOTO: The logo of Wirecard AG, an independent provider of outsourcing and white label solutions for electronic payment transactions, is pictured at its headquarters in Aschheim, near Munich, Germany, July 1, 2020. REUTERS/Andreas Gebert/File Photo

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

In a statement today, the central bank said funds due to merchants were held in segregated bank

accounts with licensed banking institutions in Malaysia, which were not commingled with Wirecard MY’s own operational funds.

"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," it said.

Wirecard MY is a registered entity that carries out merchant acquiring services under section 17 of the Financial Services Act 2013, following the events unfolding at Wirecard AG, which is Wirecard MY’s parent company in Germany.

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

According to BNM, while Wirecard AG has filed for insolvency proceedings in Germany, Wirecard MY is currently assessing its position and business operations in light of the developments at its parent company.

"BNM would like to assure the public that the payment system remains safe and sound, and that it continues to function smoothly," it said. - Bernama

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