On July 26, 2023, BaFin, the German regulatory body, imposed restrictions on Payone, barring them from processing transactions for specific high-risk business clients due to significant money laundering concerns and lapses in anti-money laundering measures. The regulator further mandated a halt on acquiring new clients in this segment to curb potential misuse for illicit financial activities.
The financial regulator, BaFin, pinpointed gaps in Payone‘s anti-money laundering protocols. The primary cause for these actions stems from heightened risks of money laundering and notable inadequacies in their preventive measures, predominantly impacting clients in high-risk industries.
Payone, led by Managing Director Ottmar Bloching, operates as a collaborative venture between the Worldline Group and the DSV Group, the service arm of the Sparkassen-Finanzgruppe. The DSV Group possesses a 40% ownership in Payone.
During an ongoing special review, BaFin discovered significant shortcomings in Payone‘s adherence to the enhanced due diligence requirements set by the Money Laundering Act. The regulator observed a lack of robust measures against money laundering, leading Payone to establish a notably risky portfolio in its e-commerce division.
The announcement highlighted that the affected business clientele primarily operates online platforms where consumers can make payments via credit cards, with Payone handling these transactions. However, ongoing regulatory observations suggest links between these merchant sites and deceptive activities like scam subscriptions, phishing, and counterfeit online stores.
The identified flaws pertain to Payone‘s evaluation of merchant business strategies during client onboarding. Continuous monitoring of these merchants was also found lacking. BaFin emphasized, “Specifically, Payone GmbH‘s risk assessment discrepancies did not result in the refusal of merchants or the termination of existing business ties.“
