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

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

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

Bafin says it is taking these measures "to restore proper business organisation and contain risks to operational resilience." It says this involves deficiencies in risk management and outsourcing management that now need to be addressed in the near term. These weaknesses are rooted in the bank's strong growth, he said. A special representative appointed by Bafin is to oversee implementation.

Some time ago there were already reports that apparently criminals would open N26 accounts to enable money laundering, for example. Also Startbase had reported that BaFin had asked N26 to take stronger anti-money laundering and counter-terrorist financing measures as early as May 2021. The bank was asked to make "appropriate" staffing and organisational arrangements to comply with existing regulations. Already at that time, BaFin provided the bank with a special representative. Since March 2021, N26 has been a financial holding company. This allows BaFin to monitor the entire group of companies.