Deutsche Handelsbank to Exit High-Risk Payment Sector Amid Scandal Links

A History of Controversy: Deutsche Handelsbank Under Scrutiny

Deutsche Handelsbank, long under the spotlight of Scam-Or Project, is reportedly preparing to shut down its payment division, following years of association with scam operations and cybercrime networks. Comparable to ING’s Payvision and the defunct Wirecard, the bank has often been accused of enabling financial crime through lax oversight.

Among its clients was Uwe Lenhoff, the late fraudster behind the LottoPalace scam, who allegedly used the bank to launder significant proceeds. According to Handelsblatt, a respected German publication, the bank is now preparing to close this controversial business unit.

Evidence of Involvement in Fraud Networks

Documents reviewed by Scam-Or Project link Deutsche Handelsbank to a number of large-scale fraud operations, including:

• The Zoo Broker Scam Network

• Gal Barak and his organization E&G Bulgaria

Additionally, the bank is said to have collaborated with the FCA-regulated MoneyNetInt Group, further raising concerns over its regulatory compliance.

Gradual Phase-Out of Risky Business

Over the past two years, Deutsche Handelsbank has reportedly been winding down its high-risk payment segment. In 2019, the bank had relationships with around 210 payment service providers. By recent estimates, only 20 clients remain, according to journalist Felix Holtermann in Handelsblatt.

Reportedly Terminated Clients:

• Offshore firms

• Pornography industry merchants

• Fraud-linked operators such as LottoPalace

The decision to exit this line of business appears to be a strategic move to distance the bank from its tainted past, especially in light of ongoing investigations.

Legal and Regulatory Pressure Mounts

In April 2021, Munich I public prosecutor’s office conducted a raid on the bank under money laundering suspicions. Regulatory body BaFin has also kept the bank under close watch:

Key Regulatory Actions:

• In fall 2019, BaFin pushed for the resignation of the bank’s longtime CEO

• In November 2020, BaFin ordered Deutsche Handelsbank to implement stronger internal controls and adhere to anti-money laundering (AML) and counter-terrorist financing (CTF) protocols

EFRI Legal Action and Cooperation with Authorities

The European Fund Recovery Initiative has filed money laundering charges against Deutsche Handelsbank, similar to its cases against Payvision, Wirecard, and the PPRO Group.

This is said to be actively cooperating with BaFin and German prosecutors, sharing evidence and reports on the bank’s suspected role in enabling fraudulent operations.

Conclusion

As Deutsche Handelsbank moves to dismantle its payment operations, the move is widely seen as a final step in cleaning up its controversial legacy. With investigations ongoing, the outcome may serve as another milestone in Europe’s crackdown on FinTech-enabled financial crime.