- Reg52
- Posts
- 41% share drop on fraud concerns
FCC Insights
Hi ,
A publicly listed provider losing nearly half its value on an AML story will land on every Board risk dashboard tomorrow morning - so it’s probably good for you to be up to speed on the Worldline case.
A consortium of 21 European newsrooms has released the “Dirty Payments” files alleging that French payments giant Worldline and its German arm Payone concealed merchant fraud to protect revenues. Investors wiped more than 40 % off the stock within hours, pushing it to an all-time low of €2.70.
What the investigation claims
Allegation | Details from the leaks |
|---|---|
Merchant “musical chairs” | High-risk merchants were shuffled between Worldline divisions when fraud ratios spiked, masking the problem from regulators. |
450 black-listed clients kept processing | Payone allegedly continued servicing merchants BaFin had banned in 2023 by routing them through sister entities. |
Chargeback storms suppressed | Internal dashboards flagging >1 % chargebacks were overridden so fees kept flowing. |
Worldline’s defence
The company says it “strengthened its merchant-risk framework” in 2023, exited €130 m of high-brand-risk (HBR) revenue, and now subjects the remaining 1.5 % of HBR volume to enhanced oversight and documentation.
Why this matters to AML & FCC teams
Indirect exposure: If your firm uses Worldline for acquiring, gateway or wallet services, any supervisory action (BaFin, DNB, ACPR) could disrupt payment flows and raise questions about your customer-due-diligence on those merchants.
SAR/STR scrutiny: Regulators could ask whether you spotted unusual refund patterns or “subscription traps” that the acquirer allegedly ignored.
Supply-chain liability under the incoming EU AML Regulation and PSD3: All actors in the payment chain must prove risk-based KYC on merchants—even when outsourced.
Next steps signals to watch
Formal statements from BaFin, ACPR or DNB confirming investigations
Any EBA “risk alert” on merchant-acquiring AML failures
Further HBR portfolio off-boarding by Worldline beyond the €130 m already disclosed
Cheers
Paul