German regulator directs N26 Bank to prevent terrorist financing

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

by

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.
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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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