The Monetary Authority of Singapore (MAS), the top financial regulator in Singapore, has issued a statement indicating Wirecard AG (WDI:DE) customer funds have been parked in Singapore banks thus segregating the funds from the Wirecard implosion.
Wirecard is not currently licensed by MAS as there is a grace period ranging from 6 months to a year for entities providing certain regulated payment services to apply for the relevant license. During this grace period, such entities may provide the regulated payment service without a license.
According to MAS, Wirecard’s activities in Singapore are mainly limited to processing payments for merchants and helping companies issue pre-paid cards.
Wirecard Singapore has informed MAS that it is assessing its ability to continue providing its services in Singapore in light of its bankruptcy filing in Germany by its parent company Wirecard AG.
As in many other jurisdictions, credit card payments at merchants using Wirecard’s services, as well as usage of pre-paid cards issued by Wirecard, will be affected if it ceases operations.
MAS has informed Wirecard of their expectations that they promptly notify customers in advance of any disruption to their services.
MAS has stated that there are alternative payment service providers available to merchants such as NETS, PayNow, and SGQR.
