Wirecard disputed the reports, which started in February 2019, and said it was the victim of speculators. ![]() Wirecard AG was once regarded as a star of the growing financial technology sector, but its shares have fallen sharply after the company became the subject of multiple Financial Times reports about accounting irregularities in its Asian operations. The accounting scandal shocked the world and prosecutors are still pursuing those involved in the fraud scheme.German payment service provider Wirecard said Monday it has concluded that 1.9 billion euros (US$2.1 billion) which were supposed to be held in two accounts probably don't exist, deepening troubles that last week prompted the resignation of its chief executive. The payments firm was a darling of Germany’s tech industry until it collapsed spectacularly in 2020 after acknowledging that billions in assets it listed on its books did not exist. There is an Interpol red notice issued against him. The alleged mastermind, Wirecard Asia vice-president of controlling and international finance Edo Kurniawan, escaped Singapore before he could be arrested. This makes it the first Wirecard-related conviction in the world. ![]() The penalty comes a day after two former employees of Wirecard Asia were jailed on Tuesday for helping their superior embezzle funds from the subsidiary of the German-registered international payment services company. In December 2016, Standard Chartered Singapore was fined $5.2 million for breaching anti-money laundering rules in relation to the 1MDB scandal. MAS had ordered it to shut down and imposed a fine of $13.3 million for 41 counts of anti-money laundering breaches relating to the 1Malaysia Development Berhad (1MDB) scandal. The highest penalty meted out for such breaches was to BSI Bank in May 2016. Swiss Life Singapore said it cooperated closely with the authorities and additional measures have been implemented to detect client misconduct more effectively. “The case dates back to before June 2020, and since then we have taken steps to strengthen our know-your-customer process.” When asked, Citibank Singapore said this is the first time it has been fined for such breaches. “We have also deployed data analytics, which has yielded positive outcomes in money laundering and financing terrorism risk detection and mitigation,” OCBC said. “Our transaction monitoring, due diligence and know-your-customer processes have been further enhanced. ![]() OCBC said it takes such matters seriously, adding that over the past few years, it has devoted significant resources to uplift such standards and capabilities. In response to media queries, DBS and OCBC noted that the Wirecard case involved an intricate web of entities, and the transactions were part of an elaborately orchestrated scheme that involved a network of complex corporate structures and arrangements to conceal the actual control and the beneficial ownership.ĭBS said it “could have done better”, adding: “While we detected and acted upon some of these activities through transaction monitoring and customer due diligence – and ultimately exited all relevant entities – we were unable to unravel the scheme in its entirety.”ĭBS said it is now in a materially better position to respond faster and more robustly if faced with similar circumstances. The investigation did not reveal any breaches of the TCA by Citadelle and no further action against the firm will be taken, MAS added. MAS also said it has completed its investigation into business administration firm Citadelle for suspected contravention of the Trust Companies Act (TCA) by carrying on a trust business without a licence. These included enhancements to their procedures and processes, and training to improve staff vigilance in detecting and escalating risk concerns. MAS said the financial institutions have taken “prompt remedial actions” to address the deficiencies that were identified.
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