The controversial German payment processor Wirecard – Issuer of multiple crypto debit cards – was involved in a new report on suspected criminal activity of a Mastercard executive Operation in the annoying Cyprus FBME bank.
In 2014, The United States Financial Crime Enforcement Network had banned US financial institutions from dealing with the FBME after that bank was accused of being used for “Facilitating money laundering, terrorist financing, cross-border organized crime, fraud, sanction avoidance and other illegal activities”.
According to a report dated July 27th The timesthat contain allegations Facilitate the processing of funds related to the Syrian chemical weapons program and child sexual abuse via the Internet.
FBME’s alleged connections with Wirecard
The FBME bank is reported Links to Wirecard via an unidentified key clientwho was recently involved in his own scandal unable to justify the disappearance of $ 2.1 billion in cash on the company’s books.
The discovery of the missing funds caused Wirecard to file for bankruptcy and led to the arrest of the company’s CEO. Markus Braun, in Germany. COO from Wirecard, Jan Marsalek, would be hidden in Russia, where it is believed that he could use funds transferred in cryptocurrencies.
In the last chapter of the FBME series An anonymous Mastercard manager is accused by private investigators of hiding money laundering Use of a “phantom transaction” system designed to prevent Visa and Mastercard fraud and money laundering checks from being detected.
Apparently, The system pinged phantom transactions between companiesSo that the occurrence of suspicious transactions (which could trigger the alarm signal) went unnoticed within a larger – artificially inflated – volume of hundreds of thousands of visible transactions.
A spokesman for FBME shareholders rejected the new accusations as imaginative and unprovenand reaffirmed that the court did not take into account the conclusions of the private investigators “supported by no evidence base”.
A Mastercard spokesman told Cointelegraph that None of the alleged connections between FBME and Wirecard has been proven. He also told reporters that “maintains a strict application process” for payment processors, which may include fines and / or license suspension.
The growing suspicion of Wirecard
This is claimed in a report published today by the Wall Street Journal Wirecard would have incorrectly encoded transactions related to games and achieved a high level of purchases with stolen cards and reverse transactions.
In response, it is stated that both Visa and Mastercard each imposed one of them Wirecard fines over $ 10 million over 10 years ago. There are sources that claim that Visa executives have raised concerns about the German payment service provider since at least 2015.
The U.S. Department of Justice is also examining Wirecard for its possible role in a suspected bank fraud conspiracy. $ 100 million for the Marijuana Market Company Eaze Technologies Inc.
Following the temporary suspension in the midst of the scandal, the UK’s financial regulator recently reactivated the Wirecard subsidiary responsible for issuing Visa crypto debit cards.