US EditionGerman Watchdog Slaps Online Bank N26 with Sanctions
BaFin cited serious deficiencies in risk and complaint management and imposed capital and business limits, affecting N26's Dutch mortgage operations and appointing a special monitor.
- On Monday, BaFin announced a package of supervisory measures against N26, including limits on new business in the Netherlands and installing a special monitor.
- A 2024 special audit found N26 lacked proper business organisation, and BaFin said `There were serious deficiencies, particularly in risk and complaint management and in the organization of the lending business. The institution thus violated the provisions of the German Banking Act`.
- BaFin has returned to supervise N26 for the second time since 2021, after AML deficiencies cost �4.25 million in penalties and the bank closed U.S. operations in 2021.
- With 4.8 million revenue-relevant customers in 2025, the orders may affect a broad European client base, and N26 said it was `in close and constructive communication with the supervisory authorities as well as the appointed special representative` while a spokesperson did not immediately respond.
- As a leading fintech, N26 faces heightened scrutiny even as it narrows focus to Europe; BaFin said `serious deficiencies` in risk and lending, and imposed a €4,250,000 fine in recent months.
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41 Articles
DEXYPTAGE - The German financial gendarmerie has recently imposed new restrictions on Berlin fintech, designed to correct shortcomings in its organisation and to strengthen its financial strength.
kreiszeitung.de
mannheim24.deAt N26, Bafin attracts the reins much more firmly. The aim of the measures is to restore a proper business organisation.
The Bafin tightens the requirements for N26 following new deficiencies in risk and complaint management – which is why a special representative is needed.
The Financial Supervisory Authority has identified serious deficiencies in risk and complaint management as well as in the organisation of the credit business.
Berlin-based online bank N26 is critical of poor money laundering and risk prevention. The company has already had to pay several million euros. Bafin is now ordering the establishment of a special representative to monitor the business organisation.
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