In recent years, German companies have increasingly been used as payment processors for scams and cybercrime. The Wirecard case is well known. Less well known is that dozens of German companies are still acting as unauthorized payment processors for scammers. The law calls it money laundering. Lipans Smart Consult GmbH was one of those laundromats. BaFin issued a Cease-and-Desist Order but the company has already been dissolved months ago.
First things first. BaFin had already issued the order on October 27, 2020. But this was almost 3 months too late. According to the German company register, Lipans Smart Consult GmbH has already been terminated with effect from August 14, 2020. In this respect, it is only of historical interest that the Cease-and-Desist Order has now become legally effective on November 25, 2020. While BaFin was still working on the case, the company’s accounts were closed and the victims’ money is with the scammers.
In recent years, the German watchdog BaFin has attracted attention mainly because it reacts either not at all or much too late to violations of financial laws and regulations. Apparently also in this case. It seems that BaFin is currently not prepared for the cyberfinance era. The agency is far too lethargic and has serious problems to recognize and fight the illegal methods of the scammers
