The Monetary Authorities in Singapore (MAS) has ordered the local Wirecard entities to cease their payment services, the regulator announced on Wednesday.
Furthermore, Wirecard SG was asked to return all its client funds by October 14, 2020.
The directive came as the German parent of the fintech company become insolvent following the missing €1.9 billion from its books. Wirecard SG also informed the Singapore regulator that it cannot provide payment processing services to a ‘significant’ number of merchants.
It is to be noted that Wirecard’s Singapore entities are not licensed under MAS.
“MAS has been monitoring the impact of Wirecard AG’s insolvency on the ability of Wirecard SG to continue providing payment services in Singapore,” the Singapore regulator stated. “MAS has closely engaged Wirecard SG in recent months to safeguard the interest of Wirecard SG’s customers.”
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Additionally, the regulator ensured that the Wirecard SG keeps its client funds in banks within Singapore and will also assist them to switch to other payment service providers.
Justifying the latest order, MAS stated that “it is in the interest of the public for Wirecard SG to cease its payments services and promptly return all customers’ funds.”
Though many Southeast Asian clients have moved away from Wirecard after the parent’s collapse, the regulator pointed out that many merchants still using Wirecard SG’s payment processing services, credit card payments at merchants using Wirecard SG’s services, as well as usage of pre-paid cards issued by Wirecard SG, will be affected.
Wirecard Subsidiaries Are up for Grabs
Similar to the Asian operation, other subsidiaries of Wirecard are seeking buyers and a few acquisition deals were already inked.
The British business of the fintech officially winding down its business as rival Railsbank is in the process of acquiring it. Another Leipzig-based subsidiary of Wirecard was sold to Munich-based identity verification, IDnow.