A MasterCard executive is believed to be involved in an alleged criminal activity at FBME bank in Cyprus. Controversial German payment processor Wirecard, which issues several crypto debit cards, is also implicated in criminal reports as we are now reading more in its latest crypto news. .
Wirecard has been implicated in a new criminal activity by a Mastercard executive operating at the troubled FBME bank in Cyprus. Back in 2014, the US Financial Crimes Enforcement Network banned US financial institutions from dealing with FBME shortly after the bank was allegedly used to “facilitate money laundering” for criminals. transnational organized crime, fraud, terrorist financing, sanctions evasion and other illegal activities. “
The charges include facilitation and handling of money related to Syria’s chemical weapons program and internet child molestation as reported by The Times. FBME is said to have ties to Wirecard through an unnamed primary customer, which was recently embroiled in a scandal for failing to account for $2.1 billion in cash on the company’s books. The discovery of the missing funds prompted Wirecard to file for bankruptcy and even led to the arrest of the company’s CEO Markus Braun in Germany. Wirecard CEO Jan Marsalek is also allegedly hiding in Russia, where he is relying on money transfers using various cryptocurrencies.
The unnamed Mastercard executive has been charged by private investigators with money laundering using a “virtual transaction” system designed to avoid detection from anti-fraud and money laundering checks. . The system works by pinging a virtual exchange between companies and reduces the rate of red flag transactions with artificially increasing volume up to thousands of apparent transactions.
An FBME bank spokesman dismissed the allegations as unsubstantiated and said that the court had not found the findings to be supported by any evidence. A spokesperson for MasterCard explained that no alleged link between FBME and Wirecard has been proven and that they maintain “strict enforcement procedures” for payment processors that may be involved in the fraud. license suspension. Wirecard allegedly had wrongly encrypted gambling transactions and had numerous stolen card purchases and reversed transactions.
Both Visa and Mastercard fined Wirecard in excess of $10 million more than 10 years ago, and some sources claim that Visa executives have raised concerns about the German payment processor since 2015. Wirecard is under investigation by the US Department of Justice. for a role in an alleged $100 million bank fraud scheme involving the cannabis market Eaze Technologies.
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