Worldline's Turmoil: The Dirty Payments Investigation
Worldline shares plummeted following allegations from European media claiming the company concealed client fraud. The company emphasized tightened risk controls and the end of relationships with non-compliant clients. An investigation by the DNB into the Dutch unit highlighted weak controls, with Worldline stopping services to some clients under regulatory pressure.
Worldline's shares took a massive hit on Wednesday, losing a third of their value, after accusations emerged from 21 European media outlets. These allegations suggested that the French digital payments company had concealed client fraud to protect its revenue streams.
Following these claims, Worldline issued a statement, highlighting its efforts since 2023 to fortify merchant risk controls and sever ties with non-compliant clients. The investigation, titled 'Dirty Payments,' pointed to Worldline's alleged acceptance of suspicious clients including those in pornography, gambling, and dating sectors.
The Dutch central bank previously opened an investigation into Worldline's unit, Global Collect Services, revealing insufficient controls. In response to allegations, Worldline halted payment processing from non-compliant customers. Worldline, a significant entity in Europe, processes transactions worth 500 billion euros annually and has imposed stricter oversight on remaining high-risk clients.
(With inputs from agencies.)
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