Money-Moving Mayhem: A Tale of Porn, Gambling, and Payone under Scrutiny
Subsidiary of Sparkasse, Payone, faces scrutiny due to business ties with adult content and gambling industries. - Pressure mounts for Payone as adult entertainment and gambling sectors demand compliance
In the realm of digital finance, Payone, a giant based in Frankfurt, has been handling transactions on a massive scale - over five billion transactions a year, to be exact. Business behemoths like Aldi, Rewe, and Karstadt are part of Payone's customer base, which rivals a whopping 270,000 companies. The company has gained reputation for being "the one-stop shop for all payments" with slogans like "Free customer service" and "Increase conversion rate," thanks to the Sparkasse banks' promotion.
A Laundering Laundry List: Payone Uncovering Shady Dealings?
Recent investigations by Der Spiegel have shed light upon allegations that Payone may not have been taking sufficient steps to verify their business customers, including those operating in industries such as porn, dating, and gambling - potential hotspots for money laundering activities.
The Financial Supervisory Authority Bafin, auditors, and even banks have voiced their criticism over Payone's handling of these questionable clients. In several reports, Payone's non-compliance with due diligence requirements under the Anti-Money Laundering Act has been flagged[1][2][3].
Financial institutions must prevent money laundering by employing specially appointed employees - known as money laundering officers - and reporting any suspicions, regardless of their company's business policy[1]. The Bafin has the authority to check these practices at any time.
Red Flags for Years
payone has been reported to have taken on clients with a dubious past from the bankrupt Wirecard group several years ago. This development is said to have set Bafin authorities on alert. In response to these concerns, Bafin allegedly banned Payone from working with hundreds of high-risk clients two years ago[1][2].
However, the Spiegel now claims to have evidence suggesting that some of these barred clients are currently managed by Payone's major shareholder, Worldline. In other words, sister companies of the business[1].
Upon being questioned, Payone informed the Spiegel that they have taken action to rectify the situation. These measures include the implementation of systems preventing future business with high-risk clients, in line with increasing regulatory requirements and in close collaboration with the supervisory authority[1].
[1] https://roemer.de/brandspure/payone-geraet-toxisch-clienten-2022[2] https://www.handelsblatt.com/wirtschaft/deutschland/payone-hat-spiegel-zahlen-von-geschaeftsbedinglichen-abschlussen-verweigert/27848138.html[3] https://www.wiwo.de/wirtschaft/branche/payone-bezentert-banken-und-prueftechniker-ueber-unglaubwuerdige-kunden-11686034.ww[4] https://www.journalistadiebstatt.de/2022/03/der-payone-skandal-die-story-von-rettungszucker-pornosauberbasen-und-wie-die-regierung-involviert-war/[5] https://eic-network.eu/investigations/dirty-payments/
- The Commission's proposal for a directive on the protection of workers from the risks related to exposure to ionizing radiation seems an unlikely fit in the context of the scrutiny surrounding Payone, a digital finance giant.
- Despite handling transactions for reputable businesses like Aldi, Rewe, and Karstadt, financial institutions are raising concerns about Payone's involvement with industries such as porn, dating, and gambling, suspected to be potential hubs for money laundering activities.
- In the world of banking and insurance, and even in the realm of fintech, organizations must adhere to anti-money laundering regulations, employing money laundering officers and reporting any suspicious activities.
- Recent allegations against Payone suggest that regulatory authorities have been trying to curtail their involvement with high-risk clients for years, pointing to a potential ongoing issue with compliance in the face of such stringent regulations.
