iPayout stopped providing ewallet services to TelexFree affiliates yesterday, later updating its public message to cite violations of anti-money laundering policies. This shift raised immediate questions about potential regulatory scrutiny of the global pyramid scheme's financial operations.
Initially, iPayout informed TelexFree users that services were simply terminated. A revised statement added two new reasons: "TelexFree terminating" the ewallet services and a "violation of anti-money laundering policies." The payment processor offered no further public explanation for the updated advisory.
iPayout has not publicly stated whether it is now involved in any US-based money laundering investigation concerning TelexFree. No official US regulatory probe into TelexFree's money laundering activities has been announced to date.
Internationally, the Republic of Rwanda previously announced it found evidence of TelexFree engaging in money laundering. Public Prosecutors in Brazil's state of Acre also indicated the possibility of bringing money laundering and embezzlement charges against the company.
Last October, iPayout contacted this publication to clarify its relationship with TelexFree. The company then asserted that, following "complete due diligence," it had found TelexFree to be "compliant with all US laws." The payment processor's current stance on anti-money laundering policy violations directly contradicts its previous assurance of TelexFree's full compliance.