Questionable Money Laundering Allegations Against Payment Service Provider Payone
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Allegations Levelled Against Payment Service Provider Payone, Citing Unspecified Fraudulent Activities - Legal Action Taken Against Payment Service Provider Payone
Payment service provider Payone, with its shady dealings with providers of adult entertainment and dating sites, has found itself under the spotlight. This German company has been accused of long-term partnerships with sketchy businesses, blatantly disregarding the necessary anti-money laundering regulations. Der Spiegel reports on this troubling issue, part of a global collaborative research alliance.
Located in Frankfurt am Main, Payone specializes in digital payments, handling transactions at checkouts and online shops. Sparkassen-Finanzgruppe, with a 40% stake in the company, holds a significant chunk, while the majority 60% is owned by the French Worldline.
The Germany-Austria based Payone boasts of processing 5.4 billion transactions annually for 277,000 customers, according to its own statements.
Following an intervention by Bafin in the summer of 2023, Payone distanced itself from hundreds of high-risk clients. However, internal documents suggest that these dubious transactions might still be processed through another Worldline subsidiary.
Payone's Response
A representative from Payone reported that they cut ties with any high-risk businesses following Bafin's intervention. The company also tightened internal controls and terminated these relationships with both partners and traders active in Germany. They went on to state that new measures had been taken to prevent similar high-risk transactions in the future.
Bafin's Actions
On July 26, 2023, Bafin prohibited Payone GmbH from processing transactions for certain business clients due to heightened money laundering risks and severe deficiencies in anti-money laundering prevention. They also prevented the establishment of new relationships to avoid Payone being exploited for money laundering activities.
Worldline's Stand
Worldline, Payone's parent company, has reinforced its guidelines since 2023 to ensure full compliance with laws and regulations. Any non-compliant business relationships have been terminated. If the group finds indications of violations, Worldline stresses they would immediately launch further investigations that could potentially lead to the termination of the customer relationship.
- Adult Entertainment
- Frankfurt am Main
- Financial Supervisory Authority
- Germany
- Money Laundering
- DSV
- Austria
Insights from Investigations and Research:
- A joint investigation uncovered that Payone had been facilitating transactions for thousands of online sex sites, including dating and pornographic websites. These merchants were allegedly involved in illicit practices such as charging customers hidden or unwanted fees after illegally obtaining their credit card details [1].
- Internal assessments and bank reviews, particularly Commerzbank's examination of Payone's accounts, revealed inadequate anti-money laundering controls. Despite the vast number of high-risk merchant accounts, only a handful of employees were responsible for monitoring potential money laundering risks. Consequently, many suspicious activities went undetected [1].
- Commerzbank's examination pointed out two Cyprus-based companies linked to a fraudulent network connected to Payone's processing. In this system, clients were deceived into purchasing services they had no intention of buying [1].
Consequences for Worldline and the Industry:
- The German financial regulator BaFin imposed mandatory changes on Payone concerning its high-risk clients and AML controls, signaling a broad tightening in the European market regarding payment service providers.
- The reputational fallout from these claims prompted a dramatic slump in Worldline's stock price, evaporating hundreds of millions of euros in market value. This market reaction underscores the critical role of reputational risk associated with money laundering and compliance issues [2][3][4].
Remarks from Associated Parties:
- Ruben Weigand, a figure connected to the merchants utilizing Payone services, claimed that the company's practices were standard for the industry and denied knowledge of systematic criminal transactions on Payone's platform [1].
(As of late June 2025, no new legal charges or criminal proceedings against Payone have been reported. The situation remains a significant case study for compliance risk management in payment processing, particularly in high-risk industries such as online dating and adult entertainment [1][2][4].)
Acknowledging the serious allegations, Payone's community policy now includes stricter provisions against high-risk businesses in vocational training, financially reiterating their commitment to full compliance with anti-money laundering regulations. To ensure business integrity, ongoing vocational training and continuous reevaluation of policies are essential for all employees engaged in processing payments, particularly within the adult entertainment sector. Furthermore, in collaboration with financial institutions like Commerzbank, Payone is implementing improved vocational training programs to adequately address money laundering risks and prevent illicit transactions.
