German regulator directs N26 Bank to prevent terrorist financing

On the 05/14/21 at 7:51AM


Tuba Raqshan

BaFin has ordered N26 Bank to implement appropriate internal controls to prevent money laundering and terrorist financing, appointing a special commissioner to monitor its implementation.

German financial services regulator BaFin has ordered N26 Bank to rectify deficiencies both in IT monitoring and in customer due diligence. Additionally, it has asked the neo-bank to ensure that it has adequate personnel, technical and organisational resources to comply with anti-money laundering obligations.

Stating that these measures must be carried out within a set time-period, BaFin will appoint a special officer to oversee the implementation of these reports. The German regulator came under scrutiny after the Wirecard scandal in June 2020, when the company failed to account for €1.9bn of missing cash, prompting European Securities and Markets Authority (Esma) to maunch an investigation that identified several deficiencies. Following this, German finance minister Olaf Scholz announced a reorganisation drive, replacing BaFin’s chief Felix Hufeld with Mark Branson, who had headed Swiss financial regulator, Finma.  

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