In the aftermath of the accounting fraud at payment processor Wirecard, Germany's finance minister decides he needs to revamp the regulatory structure for the country's financial sector.

The Munich-headquartered Wirecard recently filed for bankruptcy after auditors were unable to locate accounts in the Philippines which were supposed to contain 1.9 billion euros (2.1 billion dollars). The former chief executive officer of the company has been arrested and released on bail, while their former chief operating officer is now in hiding.

German finance minister Olaf Scholz on Sunday disclosed that he is looking to give the country's financial markets watchdog more authority in response to the scandal. The legal entanglement of working between different authorities and financial auditors led to divisions that arose in the handling of Wirecard's accounts.

In an interview with the Frankfurter Allgemeine Sonntagszeitung newspaper, Scholz said he wants to give BaFin more control rights over financial reports, "regardless of whether or not a company has a banking section," Reuters quoted him as saying in a report.

The director of Germany's financial regulator on Thursday called the Wirecard controversy "a massive criminal act", while Deutsche Bank stated it was planning to offer support for the collapsed credit card issuer's banking arm.

The comments from BaFin president Felix Hufeld are his most outspoken yet about the German payments group, which filed for insolvency owing creditors nearly $4 billion after revealing a $2.1 billion hole in its accounts that auditor EY claimed was the result of a well-organized global fraud.

German authorities have been lambasted for failing to intervene sooner despite reports of anomalies that dated back some five years. Fabio De Masi, a lawmaker belonging to the opposition Left party, has widely welcomed the propositions but called for a lower degree of accountability for auditors' failings.

The German finance minister pointed out that BaFin's protection protocols against accountants' discord in interest must be improved. Part of Scholz revamp is to propose the rotation of auditors to guarantee more independence and to evaluate whether the big accounting firms - which apart from EY in Wirecard's case include PwC, KPMG, Deloitte - should both offer to advise and keep an eye on one company at the same time.

Meanwhile, some of Wirecard's clients and partners want to cut relations with the group. Discount supermarket chain Aldi Sued, a major client, on Thursday, disclosed that the German credit card operator was no longer processing its credit card payments as of July 1.