Hi All
Ive been doing some investigation on this.
1.
Firstly, ISX held deposit accounts with KAB. Nothing more. Just plain vanlilla deposit accounts.
It references that in its announcements dated 26 Spetmeber 2018
There is no suggestion that KAB was part of the ISX 'network' or Paydentity anywhere. ISX simply held deposits there. The Paydentity service was not at any time connected to the KAB, so ISX had no means (legal, technical or otherwise) to be checking on KAB.
See
https://www.asx.com.au/asxpdf/20181012/pdf/43z664wwptsxnm.pdf and
https://www.asx.com.au/asxpdf/20180926/pdf/43yn3ssd41g1l9.pdf2018.09.26_Market Update_Supply Chain.docx Kobenhavns Andelkasse Bank (https://kbh-andelskasse.dk)As of the 13th September 2018, the Kobenhavns Andelkasse Bank (“KAB”) was placed under the control of the Danish State administration companyfor banks, known as “Finansiel Stabilitet”. The Company is continuing to seek clarification but has received information from FS in the last 24hours, that where a resolution was previously thought possible, means the Company’s clearing and settlement of its partner card networks via KABis no longer possible. The KAB matter has already impacted processing, clearing and settlement intermittently during July and August, and most of the September month.The Company’s merchants have in the meantime made arrangements to continue to utilise their existing card processing facilities outside of theCompany’s present network.
The Company had used KAB as part of its card and APM clearing and settlement network, including for holding Company’s own, settlement andclient funds in EMA’s. The direct exposure to KAB is circa €255k, which is likely to be returned under the Danish ‘Guarantee Scheme for Depositorsand Investors’, with the Company awaiting details as to timing of release of funds.
The use of KAB is nothing more sinister than a depositor (ISX) choosing the wrong bank. Given that Commonwealth Bank, Danske Bank, Deutsche Bank all had MASSIVE money laundering issues at the same time, do we also blame all their customers as well?
2. EY / KPMG at Fault as the Auditors of KABThis the real story >
https://www.freemalaysiatoday.com/category/business/2019/04/12/kpmg-ey-probed-by-police-for-money-laundering-in-denmark/ . If anyone actually was monitoring, it was 2 of the Big 4 Auditors.
Thankfully, ISX's auditors, Grant Thornton, were not involved.
So, are we poking fingers at the failings of KPMG ? Nope, ISX, with a basic deposit account, cops the blame from the AFR and SMH.
3. The Real Money Launders who are being investigated are....... (Not ISX!)https://www.fintelegram.com/kobenhavns-andelskasse-moorwand-broker-schemes-investment-fraud-and-money-laundering
and
https://www.fintelegram.com/moorwand-payment-scheme-copenhagen-andelskasse-charged-with-money-laundering
Moorwand and some appears appear to have moved EUROS 550m in and 550m out.
https://medium.com/the-financial-telegram/moorwand-payment-scheme-copenhagen-andelskasse-charged-with-money-laundering-8e4b76673d66
ISX at that stage was barely processing in the millions, so it could hardly have been the cause of any suspicion, given the size of the Moorwand movements
4. Colin Kruger claims to have found 26 suspicious matter reports that reference ISXWell, there's an issue here.
SMR's are confidential, and revealing of the contents is illegal.
Can Colin substantiated his claim of some 26 SMR's raised on ISX (versus 1645 in general), or is it fake news he made up for the story?
There is mention in Danish news of the number of SMR's, but, the real news is Moorwand (per above).
ISX doesnt get a mention anywhere in any EU news.
5. The issue was solvency as well as AMLhttps://www.efdi.eu/sites/default/files/archive/eucomd2i_2019-03-14_berlin_presentations_eucom_resolutionofkak.pdf
6. No regulator of ISX has posted any notice, sanction or otherwisenegative comment Well, its hard to prove a negative, but neither the ECB, EBA, or CBC have any negative notices on ISX's subsidiaries or ISX itself.
7. Nine Entertainment Company (ASX : NEC) Appears to be exactly that, cheap entertainment, and no news.
ASX : NEC is Fake news, no real research, tenuous links, and drawing an extremely long bow. They should be embarrased.
ISX had EUROS 255k with KAB as a depositor. Thats only 549million less than Moorwand.
ISX share price dropped, it lost money, and it lost deposit accounts into which it was receiving money from the card schemes. It suffered a loss of credibility at the time of its 'supply chain' issues last year.
Yet there are insinuations by NEC / SMH / AFR that somehow and for some reason, ISX as a simple deposit client should have known what KAB was up to (meanwhile KPMG and regulators didnt).
What bollocks Colin Kruger and Johnny Shapiro. Seriously piss poor journalism.
