Dirty Dealings: Payment Service Provider Payone Under Fire for Alleged Shady Business with Adult Sites
Accusations levied against financial service provider Payone - Accusations Levied Against Payone: A Legal Matter of Interest
Hey there, folks! it's the lowdown on the juicy drama surrounding Payone, a digital payments specialist under the microscope for some sketchy dealings. According to German magazine "Der Spiegel," Payone has been cozying up with providers of adult dating and porn websites, flouting legal guidelines on anti-money laundering for years.
Based in the financial hub of Frankfurt am Main, Payone processes billions of transactions each year for over 277,000 customers. The Sparkassen-Finanzgruppe, a major German regionalbank, owns 40% of the company, while the French Worldline snagged the remaining 60%.
Mind you, this ain't small potatoes we're talkin' about. Payone's extensive portfolio includes private payments and online shopping transactions in both Germany and Austria.
Following a Bafin (German Financial Supervisory Authority) intervention in the summer of 2023, Payone is said to have cut ties with hundreds of "high-risk customers." However, internal documents suggest that these transactions might still be processed through another Worldline subsidiary, a Payone sister company.
Putting out the Fire: Payone's Response
A Payone spokesperson claims the company has put an end to these "high-risk businesses" following Bafin's intervention. The Payone GmbH swiftly took action to terminate these relationships with both partners and traders in Germany. Additionally, internal controls have been fortified to prevent further transactions from similar customers who could pose increased compliance risks.
On July 26, 2023, Bafin prohibited Payone GmbH from processing transactions for certain business customers due to high money laundering risks and glaring deficiencies in anti-money laundering prevention. Bafin also prohibited the establishment of new relationships in this area to prevent Payone from being misused for money laundering.
Worldline Holds the Reins: Consequences for More Misdeeds
Worldline, Payone's majority owner, has strengthened its guidelines since 2023 to ensure full compliance with laws and regulations. Business relationships deemed non-compliant have been axed. In the event of indications of violations, additional investigations will be launched, possibly leading to the termination of the customer relationship.
- Adult Content
- Frankfurt am Main
- Financial Supervisory Authority
- Germany
- Money Laundering
- DSV
- Austria
[1] Financial penalties for several entities due to anti-money laundering compliance failures, but Payone or specific cases connected to adult content sites are not mentioned.[2] Unrelated topics, including IT service companies, legal cases, tax information, and political commentary within Europe.[3] No detailed or specific information available regarding Payone's alleged money laundering activities involving adult content sites following Bafin's intervention in 2023. If this investigation is ongoing or subject to confidential regulatory action, details may not yet be publicly disclosed or available in the cited materials.
- Despite the financial supervisory authority's intervention in 2023, it remains unclear if Payone's vocational training programs, aimed at improving financial compliance, have been focused on addressing their alleged shady dealings with adult content providers in Frankfurt am Main, Germany.
- In light of the ongoing allegations against Payone, the need for vocational training programs in the financial sector, ensuring understanding of business ethics and anti-money laundering policies, has gained significant importance, particularly within Germany and Austria.
