Wirecard MY assessing business operations
KUALA LUMPUR: Wirecard Payment Solutions Malaysia Sdn Bhd (Wirecard MY) is assessing its position and business operations in light of developments at its parent Wirecard AG, which filed for insolvency in Germany, said Bank Negara Malaysia.
Wirecard MY carries out merchant acquiring services under Section 17 of the Financial Services Act 2013.
“Bank Negara is monitoring the operations of Wirecard MY to ensure that it will continue to fully meet its settlement obligations to merchants in Malaysia,” said the central bank in a statement yesterday.
“Funds due to merchants are held in segregated bank accounts with licensed banking institutions in Malaysia, which are not comingled with Wirecard MY’s own operational funds.”
Bank Negara said Wirecard MY had 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 would like to assure the public that the payment system remains safe and sound, and that it continues to function smoothly,” it said.
Last week, Wirecard filed for insolvency after saying almost €2 billion it had reported as cash probably never existed, throwing the future of its banking and others businesses into doubt.
A Bloomberg report said former Wirecard chief executive officer Markus Braun was now out on bail after his arrest.
It was reported on Thursday that Deutsche Bank AG was weighing a Wirecard AG bailout.