![]() ![]() Competitor filings, in this case that I reviewed - Paypal - do not note similar compliance issues and risks. Only one research analyst, Goldman Sachs analyst Dmitry Trembovolsky, has highlighted this risk and that was over half a year ago - as such I deem this to be critical as the market, analysts and investors do not have this on their radar. QIWI has been linked to funding of both Russian and Islamic State militants - its current structure and compliance network only amplifies potential future issues. ![]() ![]() As a critical partner, Visa ( V ) is unlikely to be content with QIWI's issues - this could drastically change their relationship. The company has taken down certain inappropriate users trying to attain funding but have not fixed the heart of the matter which opens it to significant ongoing risk. In my view, QIWI's compliance procedures are inadequate, and this is confirmed as it openly notes this in its filings. In the case of QIWI, there has been no response to the New York Times findings, it has not put out a press release or any filing - perhaps it is hoping that investors did not appreciate the importance of the information. It is my view that this information is much more substantial than both investors and QIWI realizes. Since the New York Times uncovered QIWI connections to war financing, the stock is down a little over 2% - nothing notable. Through mid-May, QIWI's stock had risen over 70% year-to-date. QIWI's business and stock will face meaningful negative pressure as a result of this newly uncovered information The rest of this report sets out the details that illustrate why. The writing is on the wall as QIWI will now face negative attention for involvement in funding terrorism, not dissimilar to the attention received by the Clinton Foundation for funding from a Russian uranium deal. QIWI is an instant payment operator for consumers in Russia that now finds itself between a rock and a hard place. The NYT authors spilled the beans on QIWI's enabling war funding through its payment transfer system in the Russian-Ukraine conflict. On June 11, 2015, New York Times journalists Jo Becker and Steven Lee Myers released an article highlighting skeletons in QIWI plc ( NASDAQ: QIWI) closet. On June 8, 2015, President Obama convinced European leaders to maintain economic sanctions on Russia. The relations between Russia and the western world remain cold as U.S./Euro sanctions emplaced on Russia have no end in sight. The conflict between Russia and Ukraine has intensified since mid-2014. The New York Times has broken the ice on a little-known issue - QIWI facilitating funding of rebel groups in the ongoing Russian/Ukraine conflict… ![]()
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