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Wirecard Bank Ringfenced by Germany’s Bafin After Insolvency

  • Regulator seeks to stop funds from being being used elsewhere
  • Bafin has been criticized for not moving quicker on Wirecard
Updated on

Wirecard AG is ceding control of funds at its banking unit after Germany’s financial regulator stepped in to prevent the money from being deployed elsewhere at the company following its decision to start insolvency proceedings.

BaFin -- as the watchdog is known -- is ringfencing the banking unit after the payments provider on Thursday said it’s seeking court protection because of its over-indebtedness. Wirecard Bank AG is not part of that process and BaFin has appointed a special representative for the unit, according to a statement by the company.