Neobank N26, which had been fined €4.25m for weak anti-money laundering controls at the end of 2021, has received another warning from the German financial regulator, BaFin.
“The Financial Supervisory Authority (BaFin) has extended the anti-money laundering measures against N26 Bank AG and clarified them in part. The restrictions on growth for new customers and the mandate of the special representative remain in place,” wrote BaFin in a statement published on 17 July, referring to measures taken in March.
The measures in 2021 included the appointment of a supervisor directly in the bank and a limit--50,000--on the number of new customers that N26 could accept.
On its website, the bank responded that this is just the publication of the March decision. “In 2021, N26 received two orders from BaFin. In addition to the anti-money laundering order issued in May, the second order on the organisation of N26’s activities and risk management was executed and expired. N26 has implemented the respective supervisory and regulatory requirements in this area,” it wrote.
“In recent years, N26 has made significant investments in anti-money laundering measures and continues to expand these efforts around its technological and organisational capabilities. Today’s statement acknowledges these improvements and includes a plan to address the remaining outstanding items,” wrote N26.
N26 has more than 8m customers across 24 European markets--including 500,000 in Benelux, it confirmed; the figure of 10,000 for Luxembourg alone had already been confirmed to Delano’s sister publication Paperjam--and processes more than €100bn in transactions a year.
It has its headquarters in Berlin as well as offices in several European cities, including Barcelona, Madrid, Paris and Vienna, with a team of 1,700 people of more than 80 different nationalities. Founded by Valentin Stalf and Maximilian Tayenthal in 2013, N26 has raised nearly $1.8bn.
This article was first published in French on Paperjam. It has been translated and edited for Delano.