German financial regulator BaFin continues to put pressure on Austrian-founded neobank N26. The authority had extended “money laundering measures” to N26 and partially specified them, the authority announced on Monday. Growth restrictions on new clients remain in effect for the institute and the mandate of the BaFin-driven special representative also remains in effect.
The background is that the institute – despite some progress – “still has shortcomings in its anti-money laundering and terrorist financing systems”. N26 has invested heavily in anti-money laundering measures in recent years and has expanded its staff, according to the Berlin-based digital bank. N26 will continue to “work in close coordination with BaFin and the Special Representative to fully implement the updated order (..)”.
Specifically, BaFin now ordered that N26 Bank must take appropriate technical, organizational and personnel measures to ensure proper business organization and continuous compliance with its legal obligations. The notification system for suspicious activities is particularly affected. BaFin has long targeted N26, and in May 2021, the authority had already directed the company to strengthen its money laundering prevention systems. The Berlin digital bank announced that N26 had already fulfilled previous BaFin orders in full.
N26 was founded in 2013 by the two Viennese Valentin Stalf and Maximilian Tayenthal and has been active in Germany and Austria since 2015.
Source: Krone
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