N26 gets BaFin special representative at its side

Neobank is assigned a special representative. In addition, the supervisory authority demands better internal security measures.

The German Federal Financial Supervisory Authority (BaFin) has ordered N26 to take stronger measures to combat money laundering and terrorist financing. In a statement, it said, "Specifically, it is ordered that N26 Bank GmbH must eliminate deficiencies in both EDP monitoring and the identification and verification of customers." In addition, the bank is to make "appropriate" staffing and organisational arrangements to comply with existing regulations. To monitor the measures, BaFin is providing the bank with a special representative. Since March this year, N26 has officially become a financial holding company. This means that BaFin is allowed to control the entire group of companies.

N26 writes in a press release to have already done a lot to prevent money laundering in the past. "Nevertheless, we recognize that more needs to be done in this area. N26 is committed to implementing all the above-mentioned points of order." The new regulations will have no impact on customers, the statement said. N26 intends to work closely with the special commissioner, it added.