BANK Negara Malaysia (BNM) is keeping a close watch on Wirecard’s Malaysia operations after the latter’s parent company in Germany has filed for insolvency proceedings.
Wirecard Payment Solutions Sdn Bhd (Wirecard Malaysia) is a registered entity that carries out merchant acquiring services under Section 17 of the Financial Services Act 2013. Wirecard Malaysia’s primary activity in the country is to process card payments for merchants.
Its operations are being “closely” monitored to “ensure that it will continue to fully meet its settlement obligations to merchants” in the country, BNM said in a statement today.
“Funds due to merchants are held in segregated bank accounts with licensed banking institutions in Malaysia which are not commingled with Wirecard MY’s own operational funds,” the central bank added.
Wirecard Malaysia was also 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, BNM said.
“The payment system remains safe and sound, and it continues to function smoothly,” the central bank added. – July 3, 2020
