Blockchain News

Mastercard Executive Linked To Suspect Transaction At Cyprus Bank

A Mastercard executive has been linked to suspect transaction at Cyprus Bank.

In 2014, the United States’ Financial Crime Enforcement Network had banned U.S. financial institutions from dealing with FBME after the bank was accused of being used to “facilitate money laundering, terrorist financing, transnational organized crime, fraud, sanctions evasion and other illicit activity.” 

The system allegedly worked by pinging phantom transactions back and forth between firms, thereby diluting the incidence of suspicious (red flag) transactions within a higher — artificially inflated — volume of hundreds of thousands of apparent transactions. 

A spokesperson for FBME’s shareholders has dismissed the fresh allegations as being fantastical and unproven, stating that the court has not found the private investigators’ findings to be “supported by any evidence base.”

A Mastercard spokesperson told Cointelegraph that none of the alleged links between FBME and Wirecard have been proven. It further told reporters that it “maintains a rigorous enforcement process” for payment processors, which can involve fines and/or the suspension of licenses.

In response, both Visa and Mastercard are alleged to have each imposed fines on Wirecard in excess of $10 million over 10 years ago. Sources have claimed that Visa executives raised concerns about the German payments processor since at least 2015.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.