PETALING JAYA: Bank Negara Malaysia (BNM) provided information on concerns over Wirecard Payment Solutions Malaysia Sdn Bhd over its parent company, Wirecard AG’s insolvency proceedings filed in Germany.
It clarified that Wirecard Malaysia’s primary activities in Malaysia is to process card payment for merchants as it is a registered entity that carries out merchant acquiring services under section 17 of the Financial Services Act 2013.
The central bank noted that while Wirecard AG has filed for insolvency proceedings in Germany, Wirecard Malaysia is currently assessing its position and business operations in light of the developments at its parent company.
At the moment it is closely monitoring the operations of the financial service provider to ensure that it will continue to fully meet its settlement obligations to merchants in Malaysia.
BNM highlighted that funds due to merchants are held in segregated bank accounts with licensed banking institutions in Malaysia which are not commingled with Wirecard Malaysia’s own operational funds.
“Wirecard MY has also 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,” it said in a statement.
The central bank assured the public that the payment system remains safe and sound, and that it continues to function smoothly.
source https://www.thesundaily.my/business/bnm-clears-the-air-over-wirecard-malaysia-operations-HE2655119
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