Bafin misses N26 limit of 50,000 new customers per month

The current measures were preceded by reports of security problems. A special commissioner is to ensure that these are enforced.

The German Federal Financial Supervisory Authority (BaFin) has ordered Neobank N26 to accept only 50,000 new customers per month from November 6. In addition, risk positions collateralized by real estate may only have a maximum value of 500,000,000 euros. This applies in all countries in which N26 operates.

Bafin explains that it is taking these measures "to restore a proper business organization and mitigate risks to operational resilience." This involves deficiencies in risk management and outsourcing management, which must now be remedied in the near future. These weaknesses are due to the bank's strong growth. A special representative appointed by Bafin is to monitor the implementation.

Some time ago, there were reports that criminals were apparently opening N26 accounts in order to facilitate money laundering, for example. Also Startbase reported that BaFin had already asked N26 to take stronger measures to combat money laundering and terrorist financing in May 2021. The bank was asked to take "appropriate" personnel and organizational measures to comply with the existing regulations. BaFin had already assigned a special representative to the bank at this time. N26 has been a financial holding company since March 2021. This allows BaFin to monitor the entire group of companies.