N26 expands management team after Bafin allegations

Not taking good enough action against 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 expanding its management team to include a Chief Risk Officer and Money Laundering Officer.

Last week, accusations were made against N26 for not taking decisive enough action against money laundering. Insiders had raised it with the Handelsblatt from the Bafin. It was said that the banking regulator was thinking about restricting the neobank's new customer business. Now N26 reacts and appoints the managing director Thomas Grosse as Chief Risk Officer (CRO). In addition, Stephan Niermann becomes 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," co-CEO Valentin Stalf comments. Neobank's reasoning is aimed at "the increasingly complex regulatory requirements in the banking sector", which demands a change in management. Last week, Handelsblatt reported more than 1,000 accounts used by alleged criminals at N26. Time and again, the fintech has clashed with Bafin, which considers N26's regulations and safeguards insufficient. In spring, the supervisory authority sent a special representative to N26.