Latest news with #Papara
Fintech News ME
a day ago
- Business
- Fintech News ME
Papara Founder Among 13 Detained in Turkish Fintech Crackdown
Turkish authorities have detained 13 individuals as part of an ongoing investigation into fintech company Papara, over allegations of money laundering, illegal betting activities, and the formation of a criminal organisation, Interior Minister Ali Yerlikaya announced on Tuesday (May 27) . According to Reuters, authorities suspect that Papara, an online platform providing money transfers, foreign exchange, and bill payment services to its 21 million users, was facilitating the transfer of illegal betting revenues by allowing users to open accounts for this purpose. State broadcaster TRT Haber reported that those detained include Papara's founder and chairman, Ahmet Faruk Karslı. In response to the investigation, the Savings Deposit Insurance Fund (TMSF) was appointed as trustee to oversee Papara by court order, following reports from the Central Bank of the Republic of Turkey, the Financial Crimes Investigation Board (MASAK), and other relevant bodies. The central bank, which regulates payment service providers, stated on Tuesday that temporary daily transaction limits would be imposed on the platform. 'In this process, which will be carried out in coordination with the relevant institutions, temporary daily limits will be applied to payment transactions at the institution,' the central bank noted. The central bank also sought to reassure users, emphasising that, 'within the scope of the law, the funds of payment service users in payment and electronic money institutions are secured in protection accounts at banks.' Yerlikaya added that the authorities have seized 10 companies, bank accounts, and the assets of the detained individuals. A financial crimes investigation revealed that over 26,000 accounts had been used for illegal online betting activities, with transactions amounting to 12.9 billion lira (approximately US$330 million). Papara, considered one of Turkey's leading fintech firms, has yet to issue a statement regarding the matter. Founded in 2015, the company received its electronic money institution license from Turkey's banking regulator, BDDK, in 2016. It expanded internationally in 2023 through the acquisitions of Pakistan-based SadaPay and Spain-based Rebellion Pay.
Express Tribune
3 days ago
- Business
- Express Tribune
SadaPay's Turkish owner faces money laundering probe
Listen to article Papara — a Turkish financial technology company that acquired Pakistan's leading fintech SadaPay in May 2024 — is currently under investigation by Turkish authorities for alleged involvement in money laundering, illegal betting, and other financial crimes. The company's founder and CEO, Ahmed Faruk Karsl?, has been detained along with 12 others as part of a sweeping law enforcement operation. According to a report by the Istanbul Chief Public Prosecutor's Office confirmed that Karsl? was taken into custody during coordinated early morning raids across Istanbul. Authorities have seized a wide range of assets linked to the suspected criminal network, including eight businesses under PPR Holding Inc., multiple properties, luxury vehicles, yachts, and cryptocurrency wallets. The investigation, supported by data from the Central Bank of the Republic of Turkey (CBRT), the Financial Crimes Investigation Board (MASAK), and other regulatory bodies, revealed that Papara's platform was allegedly used to facilitate illegal financial transactions. Investigators found that 102 of the 26,012 user accounts created through Papara's technology were directly involved in high-volume illegal betting and fund transfers. These transactions were routed through 274 different bank accounts and eventually funneled into 16 cryptocurrency wallets as part of an elaborate money laundering scheme. Turkish Interior Minister Ali Yerlikaya stated that 13 individuals have been detained and that assets of the companies and suspects involved have been frozen. The financial crimes unit estimates that the illicit transactions amounted to over 12.9 billion Turkish lira (approximately $330 million). Papara, which reportedly has over 21 million users and a valuation exceeding $2 billion, acquired Pakistan-based SadaPaya licensed Electronic Money Institution (EMI) regulated by the State Bank of Pakistan — exactly one year ago. However, Pakistani authorities have not yet reported any links between the Turkish investigation and SadaPay's operations in Pakistan. Industry experts believe that the developments in Turkey necessitate a careful review by Pakistani regulators. A fintech analyst Muhammad Yasir urged the State Bank of Pakistan (SBP) to closely monitor local fintech operators associated with foreign sponsors. "This case highlights the need for enhanced regulatory oversight and continuous due diligence," noted Yasir, adding, "While the allegations pertain to activities in Turkey, the reputational impact on SadaPay is inevitable. SBP must re-evaluate its existing EMI regulations and adopt a proactive approach to managing cross-border financial risks." He added that as financial technologies evolved and cyber-financial crimes grew increasingly sophisticated, Pakistan's regulatory framework must be regularly updated to safeguard consumer interests and the integrity of the national financial system.
Arab News
6 days ago
- Business
- Arab News
Turkiye detains 13 people in probe of fintech Papara, which acquired Pakistan's SadaPay
ISTANBUL: Turkish authorities detained 13 people as part of an investigation into fintech company Papara over suspected money laundering, illegal betting and establishing a criminal organization, Interior Minister Ali Yerlikaya said on Tuesday. Yerlikaya said authorities determined that the company, which provides online money transfers, foreign-exchange transactions and bill-payment services for its 21 million users, was allowing users to open accounts to transfer illegal betting income. A report by state broadcaster TRT Haber said the detentions included Papara's founder and chairman, Ahmet Faruk Karsli. As part of the probe, the Savings Deposit Insurance Fund (TMSF) was appointed as a trustee to Papara by a court decision, following reports from the central bank, the Financial Crimes Investigation Board (MASAK), and other relevant institutions. The central bank, which regulates payment firms, said on Tuesday it would implement daily limits to transactions made on the platform. 'In this process, which will be carried out in coordination with the relevant institutions, temporary daily limits will be applied to payment transactions at the institution,' the central bank said in a statement. It also sought to reassure users, noting that 'within the scope of the law, the funds of payment service users in payment and electronic money institutions are secured in protection accounts at banks.' Yerlikaya said 10 companies, bank accounts and assets of the detained individuals were seized as part of the investigation. A report by the financial crimes unit found that more than 26,000 accounts were used for illegal online betting, involving transactions worth 12.9 billion lira ($330 million), he added. Papara, one of Turkiye's fastest-growing fintech companies, did not immediately respond to a request for comment. The company was founded in 2015 and received an electronic money institution license from the banking regulator BDDK the following year. It expanded abroad by acquiring Pakistan-based SadaPay and Spain-based Rebellion Pay in 2023. According to its website, Papara had 21 million users as of last year. PPR Holding owns Papara, and Trade Registry data shows Karsli held about 90 percent of the company as of May 2024.
Reuters
7 days ago
- Business
- Reuters
Turkey orders detentions in fintech Papara probe, broadcaster TRT says
ISTANBUL, May 27 (Reuters) - Turkish prosecutors have ordered the detention of 13 people as part of an investigation into fintech company Papara over suspected money laundering, broadcaster TRT Haber reported on Tuesday. Papara did not immediately respond to an emailed request for comment. The TRT Haber report said the company, which provides online money transfers, foreign-exchange transactions and bill-payment services, was being investigated for enabling illegal online betting money transfers. It said prosecutors had ordered the detention of 13 people including the founder and the chairman of the company, adding that trustees had been appointed to manage the firm during the course of the probe.
