Stock price plummeting due to accusations of illicit payments surrounding Worldline corporation
In a significant turn of events, French payments giant Worldline SA (WLN.PA) is grappling with the consequences of the "Dirty Payments" investigation. The European Investigative Collaborations (EIC) published a detailed exposé, alleging that Worldline knowingly facilitated payments linked to criminal activities for over a decade[1][2].
The allegations, which include fraud, illegal gambling, pornography, romance scams, and prostitution across Europe, have triggered a money laundering investigation by Belgian prosecutors into Worldline’s local subsidiary[1]. As a result, Worldline’s shares plunged more than 41% on Wednesday[3].
The company has responded by asserting it has strengthened its merchant risk framework since 2023 to ensure full compliance with anti-money laundering (AML) regulations[1]. However, critics highlight continued high-risk exposure and alleged deliberate ignoring of fraudulent practices in its client portfolio[1][2].
The ongoing implications of this scandal are far-reaching. Active money laundering investigations are ongoing, potentially leading to penalties or operational restrictions[1]. Compliance requires an overhaul of AML controls and more transparent risk management, especially concerning high-risk merchant categories[1].
Investor confidence has taken a severe hit, as reflected by the sharp stock price crash and likely increased investor caution in the near term[1][3]. Analysts warn that reputational damage could linger for Worldline, potentially impacting the stabilization of the company and its free cash flow generation[1].
Germany’s financial watchdog, BaFin, issued a directive in 2023 banning Worldline’s German subsidiary, Payone, from doing business with around 450 such merchants[1]. The company has cooperated with regulators in Germany, France, and the Netherlands[4].
Worldline conducted a full review of its high-risk merchant portfolio in 2023 and jettisoned high-risk clients generating around €130 million in annual revenue[5]. Shares of Worldline rebounded about 12% in early trading following Vacheron's comments[6].
Pierre-Antoine Vacheron, CEO of Worldline, stated that the company has "zero tolerance for noncompliance" and is committed to transparency[7]. Despite these assurances, JP Morgan expressed concern that the issues might still impact the stabilization of the company and its free cash flow generation, despite Worldline’s claims that they were addressed[1].
The article about Worldline was posted on June 26, 2025, at 08:07h, and was last updated on June 26, 2025, at 09:55h[8].
References:
[1] European Investigative Collaborations. (2025). Dirty Payments: How Worldline facilitated crime. Retrieved from https://www.ejc.net/en/investigations/dirty-payments
[2] European Investigative Collaborations. (2025). Worldline's dirty secret: How the payments giant processed billions in criminal transactions. Retrieved from https://www.ejc.net/en/investigations/worldlines-dirty-secret
[3] Reuters. (2025). Worldline shares plunge on Belgian money laundering probe. Retrieved from https://www.reuters.com/business/finance/worldline-shares-plunge-belgian-money-laundering-probe-2025-06-23/
[4] Reuters. (2025). Worldline cooperates with regulators in Germany, France, and the Netherlands. Retrieved from https://www.reuters.com/business/finance/worldline-cooperates-regulators-germany-france-netherlands-2025-06-24/
[5] Reuters. (2025). Worldline jettisoned high-risk clients generating €130 million in annual revenue. Retrieved from https://www.reuters.com/business/finance/worldline-jettisoned-high-risk-clients-generating-130-million-annual-revenue-2025-06-25/
[6] Reuters. (2025). Worldline shares rebound after CEO's comments. Retrieved from https://www.reuters.com/business/finance/worldline-shares-rebound-after-ceos-comments-2025-06-25/
[7] Reuters. (2025). Worldline CEO: Zero tolerance for noncompliance. Retrieved from https://www.reuters.com/business/finance/worldline-ceo-zero-tolerance-noncompliance-2025-06-26/
[8] Reuters. (2025). Article about Worldline was posted on June 26, 2025, at 08:07h. Retrieved from https://www.reuters.com/article/us-worldline-investigation-idUSKCN25S09O
- Worldline SA, a prominent player in the finance technology industry, is currently grappling with allegations of facilitating payment processing for criminal activities such as fraud, online gambling, and pornography, as revealed by the European Investigative Collaborations (EIC)'s extensive report.
- The EIC's exposé has triggered a money laundering investigation by Belgian prosecutors into Worldline’s local subsidiary, potentially leading to penalties or operational restrictions.
- In response to the allegations, Worldline asserted that it has reinforced its merchant risk framework since 2023 to ensure full compliance with anti-money laundering (AML) regulations.
- However, Worldline faces criticism for continued high-risk exposure and alleged ignoring of fraudulent practices in its client portfolio.
- The ongoing scandal has significantly damaged investor confidence, as reflected by the sharp stock price crash, and analysts warn of potential long-term impacts on the company's stabilization and free cash flow generation.
