MAS says Wirecard assessing ability to continue offering services in Singapore

SINGAPORE (REUTERS) – Singapore’s central bank said on Tuesday (June 30) that German payment firm Wirecard’s local entities had informed it that they are assessing their ability to continue providing services here after their parent firm filed for insolvency.

“Credit card payments at merchants using Wirecard’s services, as well as usage of pre-paid cards issued by Wirecard, will be affected if it ceases operations here,” the Monetary Authority of Singapore (MAS) said in a statement, adding Wirecard’s entities had complied with directions to hold customer funds in segregated accounts with banks in Singapore.

Last week, Wirecard filed for insolvency owing creditors almost €3 billion after disclosing a €2.1 billion hole in its accounts that its auditor EY said was the result of a sophisticated global fraud.

Separatelt, Wirecard North America Inc, a unit of German payments company Wirecard, on Monday said it has put itself up for sale. The US-based unit, which was bought by Wirecard in 2016, said an investment bank is coordinating the sale process. The unit was formerly known as Citi Prepaid Card Services.

It did not provide further details but said Wirecard North America is a separate legal and business entity of Wirecard and is “substantially autonomous” from the German company, adding that it remains “self-sustaining”.

Wirecard said on Saturday it would proceed with business activities after the insolvency filing and an administrator was appointed on Monday.

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