Germany’s banking watchdog, BaFin, noted that there were still “deficiencies” in N26’s systems and enhanced money laundering restrictions there.
The authority put a temporary cap on the number of new clients the lender was permitted to accept each month after fining N26 €4.25 million in 2021 for insufficient money laundering safeguards.
The cap, which is set at 50,000 new customers every month, is still in effect, and it has been supplemented with an audit presence at the bank to track development.
BaFin is requesting better IT oversight, increased quality control, and the implementation of efficient outsourcing controls.
N26 says it has “made significant investments in anti-money laundering measures” and is “committed to comply with all aspects of the order as quickly as possible” in a statement to Reuters.
