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EFRI`s LETTER TO THE FATF!

EFRI Letter to FATF

As you read this blog post, the #Wirecard tsunami sweeps over Germany and destroys the reputation of the capital market and its institutions. The responsible authorities (mainly #BAFIN) and involved companies (mainly EY Germany) are blaming each other and are trying to overcome the issue. The frightening truth is that Germany has a systemic problem with cybercrime and money laundering.

For us and other interested people, however, the now exposed #Wirecard fraud didn’t come as a surprise. The German Fintech und DAX superstar has been involved in cybercrime and financial scams for many years. The #Wirecard Bank is showing up on payment instructions of different scams time and again. EFRI has communicated with BaFin throughout 2019 already and finally filed a money laundering complaint about #Wirecard with BaFin and the Munich prosecutor beginning of 2020.

With #Wirecard having been heavily involved in shabby business transactions for more than 20 years, we have always been aware of the payment processer’s proximity to the scam industry. While #Wirecard facilitated cybercrime and scammers as a regulated entity there are many more illegally operating German payment processors involved in the flow of illicit money.

According to EFRI’s final Follow the money sheet for deposits of 822 scam victims more than 32% (11 Mio EURO) of the total €34,7 Mio (stolen victims´ life-time savings) were sent to shell companies with German bank accounts on the instructions of the scammers. Consequently, we can conclude that millions if not billions of illicit money from unsuspecting consumers were transferred via German banks to fraudulent companies all other the world.

Banks in Germany – above all DB/Postbank and Wirecard Bank AG -apparently have a problem with AML-CFT procedures. They continue to fail to conduct proper KYC procedures for new customers. Altogether, German financial institutions are significant contributors to the immense daily fraud perpetrated on unsuspecting consumers by cybercriminals.

The apparently bad performance of the German supervisory authority and not functioning Financial Intelligence Unit (FIU) network in Germany resulted in Germany becoming the country to go for money laundering for cybercriminals. Germany developed into a paradise for scammers ripping off consumers and retail investors and for scammers to launder the stolen money.

This happened at the expense of thousands of unsuspecting retail investors who actually relied on a functioning and well-supervised German financial market.

With FATF – the most important international body for combating and preventing money laundering and terrorist financing – being run by Germany since July 1st and a planned on-site audit in Germany in the upcoming months, we thought it could make sense to provide them with our results of the money flow of the 822 victims registered with EFRI right now as well as with a copy of our money laundering complaints for #Wirecard and #DB just to alert them and to request them to finally stop Germany from being a money-laundering hot-spot in Western-Europe.

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