Digital Bank N26 Told to Improve AML controls

N26 Bank GmbH, a digital neobank with operations in Europe and the U.S., has been told by BaFIN, the German Regulator to put in place measures to prevent money laundering, appointing a special monitor to watch over the process.

The regulator said that problems in CDD and IT monitoring where the primary cause for concern. The Concern also being aroused by lack of staff and resources to address such issues.

Deutsche Bank AG has also had a special monitor appointed. This Monitor is KPMG, appointed 2018, and last month their role was expanded with BaFIN telling the lenderto do more to prevent financial crime.

The move comes after Wirecard AG collapsed last year amid fraud and money laundring allegations.

BaFin has not yet named the monitor it appointed to N26.

In a statement, N26 said it has invested heavily in the prevention of money laundering in the past years.

“We recognize that more needs to be done in this field,” the bank said, adding e-commerce fraud has grown during the pandemic.

N26 currently has 7 million customers in 25 markets, according to its website.

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