The smartphone bank N26 has had an impressive round of financing. International investors trust the company with more than $ 900 million, which skyrockets the valuation to more than $ 9 billion. With this, the largest financing round to date for a digital bank in Europe, the company is one of the most valuable tech companies in Germany.
But the investor money is clearly advance praise. Because the company, with more than seven million customers in 25 countries, still does not have its money laundering problems under control. Just a few months ago, the financial supervisory authority Bafin imposed a heavy fine for inadequate money laundering prevention. Now the bank is supposed to dampen its growth and grow with a maximum of 70,000 new customers per month.
The start-up, which was founded eight years ago, has made impressive progress. With its approach, the smartphone bank was able to set a new standard in banking. The idea of doing all banking transactions via smartphone suits many people.
Whether or not N26 will remain a preferred partner for banking depends primarily on the institution itself. Banking is based on trust. But if the feeling creeps into customers that the money laundering problem is a constant accompaniment of the bank, they could retreat.
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In the past, the Bafin has come to N26 several times. The supervisory authority called for adequate personnel and technical and organizational equipment in order to meet the extensive requirements of the Money Laundering Act.
The Bafin has also installed a special supervisor at N26, which is also not a common measure. Obviously, the bank has weaknesses in customer identification, which is of course a gateway for fraudsters to smuggle illegally acquired money into the economic cycle.
“We are a leading company in digital banking and we know that we have to make a major contribution to the fight against financial crime in today’s digital age,” says the bank. There is still a gap between claim and reality. But with a view to the financing round, it will not fail because of the money to live up to the claim.
More: Berliner Neobank N26 now more valuable than Commerzbank