BaFin Extends Measures to Prevent Money Laundering at N26, Europe's Fintech Giant

German financial regulator BaFin has announced the extension of its measures aimed at preventing money laundering at N26, one of Europe's most valuable fintech companies. The decision comes as part of the ongoing increased scrutiny faced by the online bank.

The constraints that were initially implemented in 2021 will continue under the extension. They include the appointment of a special monitor within the bank and a strict limit of 50,000 new customers per month. BaFin has indicated that while there has been some progress, N26 still exhibits deficiencies in its systems regarding anti-money laundering measures.

In response to the extension, N26 has affirmed its commitment to compliance and emphasized the significant investments it has made in anti-money laundering measures. The company has assured its dedication to promptly meeting all the requirements outlined in the order.

With a customer base of over 8 million, N26 operates in 24 countries, predominantly in Europe. The extension of BaFin's measures indicates the importance placed on ensuring the integrity of financial operations within the company.

In addition to the existing measures, BaFin has outlined further requirements for N26. These include the establishment of robust IT monitoring systems, the strengthening of quality assurance protocols, and the implementation of effective controls for outsourced operations.

BaFin's decision to extend the measures at N26 reflects the regulatory authority's commitment to combat money laundering and enforce stringent oversight in the financial sector. As one of Europe's leading fintech players, N26 faces the imperative to meet these requirements and enhance its systems to prevent any potential misuse of its platform for illicit activities.

By fLEXI tEAM