Germany’s market regulator announced the extension of mandates it ordered at mobile bank N26 in 2021 to require the bank to address observed weaknesses in its anti-money laundering (AML) controls.
BaFin acknowledged Monday that N26 has made progress but “still has deficiencies” it must resolve. The extension applies to a May 2021 order that appointed a special commissioner to monitor the bank’s implementation efforts to resolve shortcomings identified regarding information technology monitoring and customer due diligence.
N26 was also told to ensure it has adequate personnel, technical, and organizational resources to comply with its obligations under AML law.
The bank in a press release said it fulfilled the requirements of a separate order announced by BaFin in November 2021 regarding its business and risk management organization. That order limited N26 to adding a maximum of 50,000 new customers per month and appointed a special commissioner to supervise its progress. The term of the commissioner expired, though the growth restrictions remain in place.
“Over the past years, N26 has made significant investments in anti-money laundering measures and continues to further expand these efforts around its technological and organizational capacities,” the bank said. “The order published [Monday] recognizes these improvements and includes a plan to address remaining outstanding items.”
N26 in September 2021 revealed it was fined 4.25 million euros (then-U.S. $5 million) by BaFin regarding deficiencies in its reporting of suspicious AML-related activities.