Germany’s BaFin provides updated order on the prevention of money laundering at N26
Germany’s financial regulator, BaFin, is reportedly extending measures put in place at N26 to tackle money laundering, according to Reuters.
BaFin reportedly extends measures at N26 to prevent money laundering
The watchdog will reportedly continue to impose a special monitor on N26 while also restricting its new customer count to 50,000 accounts per month – constraints it put in place back in 2021.
According to Reuters, BaFin has said that despite some evident progression, “the institution still has deficiencies in its systems”.
In October 2021, BaFin sanctioned the bank with a €4.25 million fine for money laundering failures.
The regulator attributed the bank’s AML shortcomings to its rapid growth at the time, and appointed a special commissioner to report on the progression of the bank’s implementation of more resilient security measures.
In response to the updated order, N26 says in a statement: “Over the past years, N26 has made significant investments in anti-money laundering measures, and continues to further expand these efforts around its technological and organisational capacities.”
It concludes: “N26 is committed to comply with all aspects of the order as quickly as possible and will work closely with the special representative appointed by BaFin to coordinate progress in all key areas until all orders are resolved.”
The news comes shortly after the bank announced the departure of its CGO Alexander Weber, and nearly two months after it confirmed that it is to slash its workforce by 4%.
