Singapore Banking Regulator Shuts Wirecard

Singapore’s financial regulatory authority announced Wednesday (Sept. 30) it has directed Wirecard AG to end its payment services in the Southeast Asian country and return customers’ funds by Oct. 14.

The Monetary Authority of Singapore (MAS), the nation’s central bank, said it has been monitoring the impact of Wirecard’s insolvency and the ability of the German payments firm to provide services.

The MAS has required Wirecard to keep customers’ funds in Singapore banks and help customers find alternative banks.

“Wirecard SG has informed MAS that it is unable to continue providing payment processing services to a significant number of merchants,” the regulator said on its website. “MAS has assessed that it is in the interest of the public for Wirecard SG to cease its payments services and promptly return all customers’ funds.”

Once valued at $28 billion, Wirecard filed for insolvency in June after admitting €1.9 billion ($2.1 billion) said to have been deposited in two Philippines banks did not exist.

Under the MAS order, Wirecard payments services in Singapore, credit card payments at merchants using its services and use of prepaid cards issued by Wirecard SG will be impacted.

“Customers who have not yet made alternative arrangements are encouraged to do so promptly,” the statement said. “Merchants may refer to the Annex for more details on alternative payment processing service providers.”