BNM monitors Wirecard MY operations closely

KUALALUMPUR: BankNegara 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 se lement obligations to merchants in Malaysia.

In a statement yesterday, 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 se lement 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.