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Legal Precedent: 1st Court Hearing In Preliminary Injunction Against Dutch Regulator DNB!

EFRI with preliminary injunction against Dutch regulator DNB for
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Disclaimer: The following article summarizes the report of the leading Dutch financial newspaper FD. The journalists of the financial newspaper have followed the first hearing in the Amsterdam court in which the European Fund Recovery Initiative (EFRI) and the victims represented by EFRI filed an injunction against the Dutch regulator DNB. EFRI and the victims are demanding the release of an audit report from the regulator in which the misconduct of the ING subsidiary Payvision is recorded. The victims have sued Payvision as a payment facilitator of scams to recover their lost funds. The plaintiffs argue that Payvision should have realized that its customers were scammers who defrauded consumers with their broker scams if KYC had been properly conducted.

The Dutch regulator DNB faces a preliminary injunction connection to a multi-million-dollar claim against ING subsidiary Payvision. The European Fund Recovery Initiative (EFRI), representing approximately 300 victims, alleges grave KYC violations on Payvision‘s part. Consequently, Payvision is embroiled in an anti-money laundering policy scandal. Aggrieved investors are now laying claims of no less than €14 million against Payvision. And EFRI wants to force the reluctant DNB to support the victims.  

Previous Revelations

Late last year, significant revelations were made by FD, shedding light on De Nederlandsche Bank’s (DNB) prolonged scrutiny of Payvision. The regulator’s investigative report underscores Payvision‘s deliberate neglect of fraudulent activities by its clients over an extended timeline, culminating in the breach of multiple legal provisions.  

Current Legal Proceedings:

EFRI’s legal counsel has served ING and Payvision with formal notices. This development came to the fore during the recent preliminary hearing at the Amsterdam court. Additionally, both corporations are entangled in lawsuits in Germany and Austria. Despite EFRI’s persistent settlement efforts with ING, no consensus has been reached. ING, acknowledging awareness of the allegations, refrains from delving deeper into the claim details.

ING and Payvision’s Historical Association:

ING had acquired Payvision in 2018 for a staggering €375 million, intending to rival emerging entities like Adyen. However, this acquisition turned counterproductive. Besides catering to conventional businesses, Payvision‘s clientele comprised high-risk sectors, notably the adult entertainment and gambling industries. Efforts to assimilate Payvision‘s services into ING‘s infrastructure proved futile. Consequently, ING initiated Payvision‘s dissolution by the end of 2021, culminating in massive financial write-offs for the bank.  

Research Report Controversy:

Though ING wasn’t directly implicated in the recent preliminary hearing announcing the claim, the focal point was the coveted 2020 research report on Payvision by the Durch regulator DNB, from which FD had previously cited. In a rare move, EFRI is pressing DNB to disclose this confidential document, triggering summary actions against the regulator. This 2021 report had previously spurred the regulator to instigate a legal probe, resulting in Payvision’s implication in potential breaches of anti-money laundering legislation, a case still under investigation.  

Fraud Implications:

In the current lawsuit, EFRI’s legal representative, Jan Michiel Wagenaar, elucidated on an intricate network where colossal amounts were allegedly laundered. The principal entities in this vast deceit, centering on binary options investors, have faced legal consequences. One encountered a grim fate in incarceration, while the other has been released. EFRI’s contention is Payvision‘s proactive involvement in this scam.  

Summary Hearing Nuances:

During the succinct court session, Wagenaar asserted the feasibility of disclosing the DNB report, albeit under stringent confidentiality, since its findings were previously disseminated through media outlets, like FD. DNB upholds its discretion in maintaining confidentiality. The verdict on this matter, involving DNB, will be pronounced on 11 September.  

Note: The information presented is based on the provided summary and represents a legal interpretation of events. Directly consult court records or related legal documents for official and comprehensive details.

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