German regulator orders online bank N 26 to put in place safeguards

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N 26 says that it will work closely with commissioners.

BaFin has ordered an online banking organisation BERLIN NN 26 to put in place internal controls and safeguards to prevent money laundering and terrorist financing, the German financial regulator said on Wednesday.

The regulator said it has appointed a special commissioner to monitor the implementation of this order and the progress of N 26 in resolving other problems identified by the organisation.

Earlier this year, sources told Reuters that BaFin had tightened its oversight of N 26 to cover the entire company as it rounded up its controls following the collapse of payments firm Wirecard.

Deutsche Bank also ordered BaFin to introduce further safeguards to prevent money laundering, a blow to the nation's largest lender as it tries to rebuild its reputation in the future.

N 26 said it would work closely with the, BaFin-appointed commissioner to coordinate its progress in pursuing measures to combat illegal financial transactions.

Since the start of COVID pandemic, fraudulent activity relating to online commerce has increased over the world, N 26 said, adding that fraudsters were manipulating new accounts to use them for fraudulent purposes.

The demands of BaFin aim, among other things, to block such accounts, identify illegal financial transactions as quickly as possible and prevent them from opening, it said.What have we learned from doing that?

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