N26 expands management team after Bafin accusations

Not doing enough to combat money laundering is a serious accusation for a bank. And N26 has to deal with criticism from Bafin time and again. Following the latest accusations, the neobank is now adding a Chief Risk Officer and Money Laundering Officer to its management team.

Last week, accusations were made against N26 that it was not taking decisive enough action against money laundering. Insiders made the accusation to the Handelsblatt from the Bafin. It was said that the banking supervisory authority was considering restricting the neobank's new customer business. N26 has now reacted and appointed Managing Director Thomas Grosse as Chief Risk Officer (CRO). In addition, Stephan Niermann will become Money Laundering Officer; he is currently already responsible for compliance at the fintech.

"We are aware of our special responsibility as a digital pioneer and therefore maintain an open and constructive relationship with the supervisory authorities," says Co-CEO Valentin Stalf. Neobank's reasoning is aimed at "the increasingly complex regulatory requirements in the banking sector", which requires a change in management. Last week, Handelsblatt reported that more than 1,000 accounts at N26 were being used by alleged criminals. The fintech has repeatedly clashed with Bafin, which considers the regulations and protective measures at N26 to be inadequate. In spring, the supervisory authority sent a special commissioner to N26.