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FCA freezes credit cards issued by WireCard (Payoneer, Crypto, Anna Money, Curve, FairFX, Pockit)
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FCA freezes credit cards issued by WireCard (Payoneer, Crypto, Anna Money, Curve, FairFX, Pockit)

MechanicWebMechanicWeb Member, Patron Provider

Today, the Financial Conduct Authority (FCA) issued requirements on Wirecard Card Solutions Limited (WCSL) in the UK, freezing all prepaid card activity for the time being.

Wirecard Card Solutions Limited (WCSL) is a subsidiary of Wirecard AG which has filed for insolvency.

Wirecard Card Solutions Limited (WCSL) issued credit cards of Payoneer, Crypto.com, Anna Money, Curve, FairFX, Pockit, and other financial companies. Roughly millions of users, freelancers, and small businesses have now had their funds frozen, they can't spend or withdraw them.

If you are affected or know any relevant information, please share your insights.

Links:

https://www.fca.org.uk/news/news-stories/requirements-imposed-wirecard-authorisation/
https://www.moneysavingexpert.com/news/2020/06/pockit--curve-and-other-prepaid-card-customers-see-accounts-froz/
https://sifted.eu/articles/wirecard-saga-fintech/
https://community.curve.app/t/wirecard-updates/
https://blog.payoneer.com/exclusive/wirecard-prepaid-card-update/
https://community.payoneer.com/en/discussion/67793/wirecard-issues-and-payoneer/

Thanked by 1Edmond
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Comments

  • vovlervovler Member

    How much was missing? A few millions or billions?

  • hzrhzr Member

    @vovler said: How much was missing? A few millions or billions?

    2.1b

    Thanked by 1pike
  • XsltelXsltel Member, Host Rep

    Add Holvi to the list. both my Payoneer and Holvi master cards are termporarily suspended :(

  • WebProjectWebProject Host Rep, Veteran

    @hzr said:

    @vovler said: How much was missing? A few millions or billions?

    2.1b

    Why did the FCA take this action now?

    The FCA is the UK’s designated competent authority, responsible for granting firms based in the UK, permissions to undertake e-money activities and payment services and, it is within the FCA’s power to take supervisory action in certain cases to protect the interests of a firm’s customers. Under the EMRs, the FCA may impose such requirements as it considers appropriate which may require a firm to (a) take a specified action; or (b) refrain from taking a specified action. These types of requirements are known as ‘Own Initiative Requirements (OIREQ)’.

    Our primary objective is to protect the interests and money of consumers who use Wirecard. Following last week’s news of €1.9 billion missing from the accounts of the German company, Wirecard, we immediately placed requirements on the firm’s UK business so that it should not pay out or reduce any money it holds for its customers except on their instructions. We have been working closely with Wirecard UK and other authorities over the past few days to take action that protects consumers. We are continuing to do this and on 26 June, we took additional measures to require the firm to cease all regulated activities in order to further protect customer money. This now means customers money cannot be accessed.

    All of their customers accounts are not protected by FSCS, good luck to everyone who had any funds in their accounts.

  • hzrhzr Member

    @WebProject said: Why did the FCA take this action now?

    Probably because they apparently lied to auditors for years complete with false documentation stating they had that much, I'm curious what kind of liability the Big 4 have for this incompetence

  • JoeFJoeF Member
    edited June 2020

    Thankfully I emptied my old pockit account last week.

  • AidanAidan Member

    @hzr said: what kind of liability the Big 4 have for this incompetence

    https://finance.yahoo.com/news/crypto-card-issuer-wirecard-says-154846994.html

    EY messed up, no other way to say it.

    Internal controls compromise the largest part of a "bank" audit, the fact that executives at WireCard could override controls is unacceptable.

  • MechanicWebMechanicWeb Member, Patron Provider
    edited June 2020

    @hzr said: 2.1b

    To my understanding, that 2.1B was missing from Wirecard AG, a German company.

    Germany didn't freeze the Wirecard bank, which is also a subsidiary of Wirecard AG.

    Wirecard Solutions in the UK is also a subsidiary of Wirecard AG. Unlike Germany, the FCA in the UK froze Wirecard Solutions, which was the Master Card issuer.

    It seemed to me, they acted on haste, like they don't like prepaid cards. They were just looking for a reason. They do not care for the funds of the account holders, regardless of what they say.

    FCA froze ePayments in February. Up until now, no words from them when the ac holders can get money.

    They are an outdated monster protecting the interests of money monsters, not mass people.

  • LeviLevi Member
    edited June 2020

    @MechanicWeb said: To my understanding, that 2.1B was missing from Wirecard AG, a German company.

    No, you understood wrong. Those 2.1B was never in Wirecard company. CEO provided false information to creditors in order to receive massive loans. Now, after audit, this came clear. Document doctoring, plain and simple fraud.

    As a result Wirecard shares are $0 and CEO is going to trial as he is arrested (and latter free for 5 million EUR bail).

    The real question: how many fintech companies are the same? Who will fall next? Revolut?

  • MikeAMikeA Member, Patron Provider

    I've had a few people bring this up that used them. Seems unfortunate.

  • MechanicWebMechanicWeb Member, Patron Provider

    @LTniger said: No, you understood wrong. Those 2.1B was never in Wirecard company. CEO provided false information to creditors in order to receive massive loans.

    Correct me if I am wrong, that CEO is Wirecard AG's CEO - the German Company, not WIrecard Solutions Limited's.

    WIrecard Solutions Limited is a subsidiary of Wirecard AG, and an independent UK based company, not German.

    Thanked by 1vimalware
  • jackbjackb Member, Host Rep

    @MechanicWeb said:

    @LTniger said: No, you understood wrong. Those 2.1B was never in Wirecard company. CEO provided false information to creditors in order to receive massive loans.

    Correct me if I am wrong, that CEO is Wirecard AG's CEO - the German Company, not WIrecard Solutions Limited's.

    WIrecard Solutions Limited is a subsidiary of Wirecard AG, and an independent UK based company, not German.

    Correct. The UK company was also profitable, and had no involvement from the people implicated in the Wirecard AG fraud.

    I would imagine the FCA has frozen the funds to ensure if anyone unscrupulous is left at Wirecard AG, that they don't try to siphon funds from the subsidiary. An abundance of caution, though an annoying move for end users.

  • MechanicWebMechanicWeb Member, Patron Provider

    @MikeA said: Seems unfortunate.

    Unfortunate and a result of an outdated money mongering monitoring authority.

    I know a company who used them to pay salary. Approx $100K frozen. Some lost only $200. But that $200 is a month's salary in their country.

    I do not believe the FCA had taken these circumstances into account and acted on haste.

  • MechanicWebMechanicWeb Member, Patron Provider

    @jackb said: Correct. The UK company was also profitable, and had no involvement from the people implicated in the Wirecard AG fraud.

    Thanks for confirming.

    I would imagine the FCA has frozen the funds to ensure if anyone unscrupulous is left at Wirecard AG, that they don't try to siphon funds from the subsidiary. An abundance of caution, though an annoying move for end users.

    Nope. Millions of freelancers, and small businesses rely on those cards for their bread and butter. The FCA did something similar in February, 2020. This is June.

    Those people never received those funds, and FCA went complete silent on the incident since.

    Their motives are not clear to me, but it is clearly not protecting the ac holders money.

  • RIYADRIYAD Member, Patron Provider

    Lot of freelancers in my country uses Payoneer card and is only way to receive of their income. This is very sad , specially during this covid-19 pandemic :( , many did not cash out money from ATM , since they were staying home for lockdown .

  • vovlervovler Member
    edited June 2020

    I have a few Amazon payments that I already made before the funds got frozen and are "Upcoming", I wonder if Amazon will be able to charge them when they ship the products.

  • RazzaRazza Member

    @vovler said: I have a few Amazon payments that I already made before the funds got frozen and are "Upcoming", I wonder if Amazon will be able to charge them when they ship the products.

    I would say probably not since all balances have been frozen.

  • momkinmomkin Member

    Unfortunately i was also affected by this as i have an amount of $18000 with payoneer :cold_sweat: which i cannot use because of the freeze .

  • YmpkerYmpker Member

    At least for german consumers it may be worth mentioning that if Boon.Planet (or a wirecard bank account) is your main and only bank account you probably won't have to pay any late-fees or Mahnungen. As a consumer it can't be assumed you could expect for smth like this incident to happen when Wirecard is/was a BaFin approved entity (Wirecard Bank AG that is). Going with that BGB § 286 states "(4) Der Schuldner kommt nicht in Verzug, solange die Leistung infolge eines Umstands unterbleibt, den er nicht zu vertreten hat." which basically expempts you from any late-fees, at least initially. It can probably be expected that within a reasonable time-frame (1-2 months perhaps) you'd open a new bank account with another bank and let your salary be paid to that one in order to pay your bills.

  • ExonHostExonHost Member, Host Rep

    @momkin said:
    Unfortunately i was also affected by this as i have an amount of $18000 with payoneer :cold_sweat: which i cannot use because of the freeze .

    You can withdraw 8000 as card limit is 10000. Above the 10k, funds in payoneer virtual account.

  • ayiemyayiemy Member

    In this message recorded from his home in New York, our CEO Scott Galit directly addresses the current situation with Wirecard. His message is simple. Our customers are our top priority. We’re in constant contact with the FCA and Wirecard UK and have received reassurance that funds have been safeguarded and that the freeze is temporary. We know the circumstances are challenging and are dedicated to making sure all our services are once again available.

    https://www.facebook.com/Payoneer/videos/3332956640057390/

    quoted in payoneer FB.

  • MechanicWebMechanicWeb Member, Patron Provider
    edited June 2020

    @ayiemy said: quoted in payoneer FB.

    That message actually says nothing. It just restates that the funds are frozen. It does not talk about any new measures they are trying to help the users.

    The funds are actually not at Payoneer/Wirecard (WCSL)'s hand. FCA froze them based on shady motivations.

    This is not the first time FCA did this.

    It's a systematic reallocation of funds towards the UK government from people around the world that couldn't sue them (notice how US users are not affected by this freeze).

  • ManofServerManofServer Member
    edited June 2020

    @MechanicWeb said:

    It's a systematic reallocation of funds towards the UK government from people around the world that couldn't sue them (notice how US users are not affected by this freeze).

    Aren't the USD cards also issued from Wirecard?

  • YmpkerYmpker Member
    edited June 2020

    Just tried sending money from my Boon.Planet
    (Wirecard Bank AG) account to another bank account for testing and I was able to initiate the transfer without any error message showing the money as debited. Expecting it to arrive at my other bank account tomorrow. I am assuming Payoneer and the like are running on the UK branch from Wirecard which is different from BoonPlanet Wirecard Bank AG.

  • jackbjackb Member, Host Rep
    edited June 2020

    @MechanicWeb said:
    It's a systematic reallocation of funds towards the UK government from people around the world that couldn't sue them (notice how US users are not affected by this freeze).

    With a claim that outlandish I think you'll need to post sources. The UK, although probably at its weakest for decades, is still a major world power. A few billion in cash isn't notable to the UKs finances

    Thanked by 1larmarat
  • MechanicWebMechanicWeb Member, Patron Provider
    edited June 2020

    @jackb said: With a claim that outlandish I think you'll need to post sources.

    You are right. Here are two previous incidents:

    https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000m4IXgAAM
    https://www.fca.org.uk/news/warnings/first-choice-finance-clone
    https://community.payoneer.com/en/discussion/67793/wirecard-issues-and-payoneer/

    For rest of the details, Google can provide an abundance of information, and the fact that mass people from around the globe never received anything back.

    @jackb said: The UK, although probably at its weakest for decades, is still a major world power. A few billion in cash isn't notable to the UKs finances

    It's the intention that drives them, I believe. Which is what matters most.

  • MechanicWebMechanicWeb Member, Patron Provider

    @Ympker said: (Wirecard Bank AG) account to another bank account for testing and I was able to initiate the transfer without any error message showing the money as debited.

    Germany didn't place any limitation on the Wirecard Bank AG, except that it can't do any transaction with Wirecard AG.

    Thanked by 1Ympker
  • MechanicWebMechanicWeb Member, Patron Provider

    @ManofServer said: Aren't the USD cards also issued from Wirecard?

    It's not the USD cards, but the users from the US. US users' funds were not frozen.

  • momkinmomkin Member

    @MechanicWeb said:

    @Ympker said: (Wirecard Bank AG) account to another bank account for testing and I was able to initiate the transfer without any error message showing the money as debited.

    Germany didn't place any limitation on the Wirecard Bank AG, except that it can't do any transaction with Wirecard AG.

    FCA says this is temporary freeze until the wirecard give them assurances to not move customers money to Germany so lets wait to see what's gonna happen i hope it will end will .

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