German regulator orders online bank N26 to step up controls against money laundering
23 May 2019

Germany’s financial markets watchdog (BaFin) ordered the fintech N26 Bank on Wednesday to step up controls to ensure it is better protected against money laundering.

In March the online bank, launched in 2013, made negative headlines when German newspapers reported that a customer’s account had been hacked and emptied of 80,000 euros ($89,000).

The episode drew the attention of BaFin, amid wider criticism that N26 – which has secured more than $500 million in backing from investors including Tencent Holdings and Allianz – had neglected security and compliance in its dash for growth.

On Wednesday, BaFin said N26 must take measures including reidentifying some existing customers, catching up on a backlog of IT monitoring and documenting workflows.

“Furthermore N26 Bank GmbH has to ensure the existence of … adequate personnel and technical-organisational equipment in order to comply with its obligations under money laundering law,” BaFin said in a statement.

By Douglas Busvine and Tom Sims, Reuters, 22 May 2019

Read more at Reuters

Photo: Jean-Loko [CC BY-SA 4.0], via Wikimedia Commons

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