German financial regulator BaFin has announced plans to extend existing anti-money laundering (AML) measures for digital bank N26.
According to Reuters, the watchdog is set to continue to impose a special monitor on N26 while also restricting its new customer count to 50,000 accounts per month – constraints of which it put in place back in 2021 after fining the neobank €4.25 million over lax money laundering controls.
Under its fresh assessment, BaFin told the news agency that despite "some progress, the institution still has deficiencies in its systems".
Bafin has also ordered N26 to establish adequate IT monitoring, step up quality assurance, and establish more effective outsourcing controls.
In a statement to Reuters, N26 said that it made "made significant investments in anti-money laundering measures" and that it would commit to complying with all aspects of BaFin’s order as “quickly as possible".
N26 has a customer count of around eight million customers and conducts business in 24 countries primarily situated in Europe.
In May, N26 set in motion plans to cut up to four per cent of its headcount, claiming at the time the decision came in response to the challenging macro-economic business climate.
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