The difference between the US regulators and their EU counterparts could not be greater. While the SEC and CFTC have implemented whistleblower programs and act as the advocates of retail investors, the EU regulators leave the victims rather alone in the fight against scammers and online fraudsters.
EU Action Plan to fighting money-laundering is opposed by member states with laissez-fair regulatory regimes
Cybercrime and FinTechs – Israeli Scam Tourism and the Estonian Challenge to European Regulators and Law Enforcement
German BaFin issues cease and desist order against unauthorized payment processor P & B Modern Management
The European Funds Recovery Initiative (EFRI), co-founded by FinTelegram, is specialized in the recovery of funds of investors who have been defrauded by investment scams. Furthermore, EFRI sees itself as an advocate for investors and investor protection. Currently, EFRI has been granted a Power of Attorney by more than 800 victims which have been defrauded of more than EUR 34 million. The approach applied by EFRI differs in several aspects from the activities of lawyers and other organizations in the recovery business. Also because EFRI is organized as an initiative and association of victims.
Wirecard Troubles in Germany – Class actions against the company and auditor EY adding to BaFin investigations
Not surprisingly, the turbulent times do not seem to be coming to an end soon for Wirecard. Already 2019 was dominated by accusations of balance sheet manipulation, shabby business practices, and compliance issues which were raised primarily by the Financial Times. Founder and CEO Markus Braun has always strictly rejected the accusations. Wirecard filed lawsuits and criminal complaints against the critics.
Following the KPMG special audit report that uncovered substantial issues with the company’s compliance procedures, the DAX-listed German FinTech Wirecard has announced to create a dedicated compliance department to monitor compliance with laws and regulations. The department is becoming a board department, which emphasises the importance of the issue.