Watchdog lifts restrictions on Wirecard's UK accounts, allowing customers to access cash

Financial Conduct Authority lifts restrictions on German firm's UK arm in wake of £1.7bn fraud allegations

Tuesday 30 June 2020 17:15
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The company has filed for insolvency but will continue business operations
The company has filed for insolvency but will continue business operations

The City watchdog lifted restrictions on German payments company Wirecard, meaning thousands of consumers can access their money again.

Last week the Financial Conduct Authority froze thousands of accounts operated by Wirecard's UK arm after a £1.7bn accounting scandal.

Fintech firm Curve was among those who said the FCA decision would temporarily prevent customers from using their accounts.

The FCA said written consent for Wirecard to continue providing payment services was granted on Monday and that restrictions would be lifted by Tuesday.

“The FCA's consent means that Wirecard can now resume electronic money and payment services to its customers and customers can now, or very shortly, use their cards as usual,” a statement said.

Last week, German firm Wirecard AG revealed that around £1.7bn was missing from its accounts in an alleged accounting fraud.

The company has filed for insolvency but will continue business operations.

Wirecard's rapid collapse into administration amid allegations of fraud has shocked markets and put the spotlight on auditor EY.

The Financial Times revealed on Friday that EY had failed to verify Wirecard's bank statements for three years, a task considered to be a basic requirement for any audit.

Wirecard's former chief executive Markus Braun was arrested on suspicion of falsifying company revenue to make the company appear healthier than it was.

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