Article: N26 faces BaFin scrutiny over money laundering failures

Article - Media, Publications

N26 faces BaFin scrutiny over money laundering failures

Finextra, 12 May 2021

German financial regulator BaFin has ordered mobile bank N26 to fix problems with its IT monitoring and customer due diligence to prevent money laundering and terrorist financing.

The watchdog is appointing a special commissioner to monitor the fintech giant’s compliance with the order to implement appropriate internal controls and safeguards and comply with general due diligence requirements.

N26 has also been told to ensure that it has the adequate personnel, technical and organisational resources to comply with its obligations under anti-money laundering law.The order comes two years after BaFin first reprimanded N26 for lax anti-money laundering controls.

It also comes as BaFin tightens up oversight in the wake of the Wirecard scandal, which cost the regulator’s head, Felix Hufeld, his job. N26 says that online criminal activity has soared around the world since the start of the Covid-19 pandemic and that it is working closely with the appointed commissioner.

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Article: The ex-convict’s tale: Germany’s role in Wirecard scandal under microscope

Article - Media, Publications

The ex-convict’s tale: Germany’s role in Wirecard scandal under microscope

John O’donnell, Tom Sims, 23 April 2021

In February 2019, after a steep drop in Wirecard’s share price, German authorities launched criminal probes into short-sellers and journalists who had accused the company of fraud, and banned investors from betting against the company.

Documents seen by Reuters show for the first time that the only independent information – beyond Wirecard’s representations – received by Munich prosecutors who launched the criminal probes was a third-hand account of events from a convicted money launderer, Daniel James Harris.

The rationale that led to the decisions of prosecutors and regulators to launch the criminal probes and short-selling ban, and whether they were overzealous in supporting Wirecard, are central issues being investigated by a parliamentary inquiry into the company’s collapse in Germany’s biggest post-war fraud scandal. Continue reading “Article: The ex-convict’s tale: Germany’s role in Wirecard scandal under microscope”