BaFin clarify, OneCoin must cease and desist operations in Germany
In response to the German regulatory crackdown on OneCoin’s shell company IMS International Marketing Services, OneCoin issued a press-release claiming BaFin’s cease and desist did not specifically apply to OneCoin.
Please be informed that the recently published BaFin message does not relate to OneLife or OneCoin’s Business, but to IMS GmBh.
The company IMS is a Service Provider, who supported OneLife in Payment Facilitation and Marketing Services.
OneLife and OneCoin are separate and independent legal entities.
While IMS, OneCoin and OneLife might technically be “separate entities”, in reality all three are operated by OneCoin management.
BaFin are naturally aware of this, and today issued clarification on their earlier notice.
In a new April 18th directive specifically targeting OneCoin, BaFin wrote;
Following the cease and desist order to IMS International Marketing Services GmbH (IMS) on 5 April 2017, the German Federal Financial Supervisory Authority (BaFin) issued on 18 April 2017 a direct order to OneCoin Ltd, Dubai holding that the company is to immediately cease its business activities in Germany.
OneCoin Ltd is involved in the unauthorized business by virtue of the fact that it had investors make payments to IMS’ accounts and gave payment instructions to IMS.
Pursuant to § 4 (1) sentence 4 ZAG, BaFin’s powers also extend to enterprises involved in the initiation, conclusion or settlement of such business as well to the enterprise’s shareholders and the members of its governing bodies.
As I’m reading it, the last paragraph above effectively prohibits OneCoin from conducting any financial related business in Germany.
Should OneCoin continue to operate in Germany through its own name or any related “enterprise”, BaFin have the authority to fine the company 1.65 million EUR.
BaFin’s investigation into OneCoin revealed an estimate 25,000 victims in Germany with losses of over $424 million USD. The regulator has labelled OneCoin “one of the most dangerous money games of recent years”.
Update 28th April 2017 – On April 27th, BaFin issued a cease and desist banning OneCoin from operating or being promoted in Germany.