A damning report alleged Worldline covered fraud from high risk clients to protect revenues, now Belgian authorities are taking action.
Following a report claiming Worldline “covered up customer fraud” over the last several years, the Brussels public prosecutor’s office has opened an investigation into the payment processor’s Belgian unit.
The investigation centres around alleged money laundering circulated around Worldline’s Belgian division which they believe the company had processed payments for companies performing illegal activities.
This comes off the back of the “Dirty Payments” report revealed last week, where 21 media outlets around Europe as part of the European Investigative Collaborations network alleged Worldline processed payments for high-risk brands and merchants, including adult dating sites and casinos.
Of the 21 news outlets that covered the investigation into Wordline’s involvement in the facilitation of illegal payments, Belgian newspapers Le Soir and De Standaard revealed the France-based company did not comply with anti-money laundering rules and regulations.
On June 27, the Belgian Judicial Police announced they had been assigned to the investigation and will proceed with a judicial process looking into how Worldline’s Belgian branch played a potential role in the payment process of the high risk merchants.
Allegations in focus
The Dirty Payments report stated Worldline’s decision to obscure high risk clients “made it possible for thousands of consumers to be scammed via webshops and websites”, including incidents where unauthorised payments were withdrawn from customer bank accounts.
The report also stated this process enabled Worldline to cover fraud rates and suspicious transactions to protect its revenues.
Global Collect Services (GCS), Worldline’s Dutch-facing company, were also alleged to have enlisted “dubious” customers and were investigated by the Netherlands Central Bank (DNB) in 2022 over weak controls of its management of high-risk clients. GCS ultimately had to rescreen its customers as part of a large-scale operation.
Once the Dirty Payments report was issued, Worldline responded stating: “Since 2023, the group has strengthened its merchant risk framework to ensure full compliance with laws and regulations.
“Worldline operates in a demanding and constantly evolving regulatory environment, especially the one related to HBR (High Brand Risk) sectors, such as online casinos, online stockbroking or adult dating services.
“All HBR clients still active within this portfolio are now subject to enhanced oversight, based on specific procedures. Additional requirements in terms of controls, verifications and evidence documentation have been introduced to ensure ongoing alignment with regulatory obligations and our enhanced internal standards.”
Since the allegations of covering client fraud, Worldline stock dropped significantly as low as €2.75 per share last week.
The company experienced a 37% drop on June 25, a single day biggest loss since 2023 for Worldline. Stock has recovered to €3.41 per share as of June 30.
