The European Fund Recovery Initiative (EFRI) has issued an open letter addressing concerns regarding Payvision’s involvement in facilitating fraudulent activities and the subsequent actions taken by ING and the Dutch Central Bank (DNB).
Background on Payvision’s Acquisition and Closure
Founded by Rudolf Booker in Amsterdam approximately 20 years ago, Payvision was acquired by ING in 2018 for €360 million. Post-acquisition, ING discovered that Payvision primarily served high-risk industries, including pornography and gambling, and was implicated in money laundering for broker scams. In 2020, ING sold Payvision back to its founders for a symbolic €1. By 2021, ING announced plans to phase out Payvision’s operations, a process currently underway without compensation for the victims affected by Payvision’s activities.
EFRI’s Allegations Against Payvision
EFRI represents thousands of victims of broker scams, many of whom lost funds processed through Payvision. The organization alleges that under CEO Rudolf Booker, Payvision knowingly collaborated with cybercriminals such as Uwe Lenhoff and Gal Barak. Consequently, EFRI holds Payvision directly responsible for the damages incurred by these victims.
Highlights from EFRI’s Open Letter
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ING’s Plan to Dismantle Payvision: On October 28, 2021, ING announced its decision to gradually shut down Payvision’s operations, targeting full closure by the end of Q2 2022. The bank emphasized its commitment to ensuring a seamless exit process, promising clear and timely updates to all clients affected by the service discontinuation.
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Payvision’s Connection to European Financial Crime Networks: In a landmark ruling from September 2020, the Vienna Criminal Court sentenced Israeli citizen Gal Barak for major financial fraud and money laundering offenses. During the proceedings, Payvision B.V.—then fully owned by ING—was named as the principal acquiring bank for Barak’s fraudulent platforms, allegedly handling more than €75 million in illegally obtained funds between 2015 and 2019.
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Involvement in U.S.-Based Fraud Schemes: Payvision was also implicated in processing payments for AlliedWallet, a U.S. payment processor. Its CEO, Ahmad “Andy” Khawaja, was charged in August 2021 for orchestrating a scheme that misled banks and credit card firms into handling over $150 million in transactions for banned or high-risk industries.
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Concerns Over ING and DNB’s Phase-Out Approach: EFRI questions the decision by ING and DNB to quietly phase out Payvision without addressing the company’s obligations to scam victims. They argue that failing to hold Rudolf Booker and his associates accountable neglects the rights of thousands of European retail investors seeking justice.
EFRI’s Call to Action
EFRI urges ING CEO Steven van Rijswijk and DNB President Klaas Knot to acknowledge and address Payvision’s role in facilitating fraudulent activities. They emphasize the importance of compensating victims and restoring confidence in the European financial and supervisory systems.