German app-only bank N26 has been reprimanded by regulatory body BaFin for lax anti-money laundering controls. Like other fast-growth fintechs such as Revolut, N26 has come under the spotlight for failures in fulfilling customer due diligence obligations.
„On May 20, 2019 BaFin on the prevention of money laundering and terrorist financing has issued an order against N26 Bank GmbH to take appropriate internal safety measures and to comply with general Customer Due Diligence (CDD) obligations. The order is issued on the basis of sections 6 (8) and 51 (2) sentence 1 of the German Money Laundering Act (GwG).”, according to the press release.
Following a probe, BaFin has ordered N26 to remove backlogs in IT monitoring, establish process descriptions and workflows in writing, and re-identify a specified number of existing customers.
„These measures in each case must be implemented within a specified period of time. Furthermore N26 Bank GmbH has to ensure the existence of an adequate personnel and technical-organisational equipment in order to comply with its obligations under money laundering law.”, BaFin said.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
