How BaFin Penalized the N26 AML Breach | All About Payments скачать в хорошем качестве

How BaFin Penalized the N26 AML Breach | All About Payments

While N26 seems to be enjoying the funding race with rivals like Revolut, the same cannot be said about its relationship with the regulators. After a cat and mouse game between N26 and BaFin, they’re taking their penalizing of malpractice to a whole new level. Intro - 00:00 Recent trends in Anti Money Laundering (AML) - 00:46 The new penalty model of AML breaches - 01:42 The business model of N26 - 02:05 #N26 #BaFin #FinTech #Payments ******************************************** Subscribe to watch the hottest topics in payments every Monday ►    / @paymentgenes   STAY CONNECTED: PaymentGenes ► https://link.paymentgenes.com/Website... LinkedIn ► https://link.paymentgenes.com/LI-Link... Twitter ► https://link.paymentgenes.com/twitter... ******************************************** Transcription: After a cat and mouse game between N26 and the German BaFin it looks like they’re taking their penalizing of malpractice to a whole new level. While the German challenger seems to be enjoying the high waves of the funding race with rivals like Revolut and Monzo, the same cannot be said about its relationship with the regulators. If you are remotely connected to the payments world, you probably heard about the hefty fine they received over their failing anti money laundering strategy.  But did the BaFin take it a notch too far this time? And how will the challenger navigate the consequences? After being appointed a watchdog by the regulators, N26 has now been given a cap on their customer acquisition. In other words, the bank that has been onboarding 170,000 customers every month can now only accept 50 to 70 thousand users monthly until they address issues raised by BaFin. Banks (both incumbents and challengers) have been notorious for questionable compliance with AML.  Just to freshen up your memory, ING was fined €3 Million for failures in anti-money laundering regulation earlier this year, only to be followed by ABN AMRO agreeing to pay a whopping €480m for similar violations. Not to mention that ​​Monzo is also under investigation by the British regulator  It seems, however,  that these hefty fines weren’t helping with the issue, as banks continue to violate AML rules despite hefty fines. Therefore, the BaFin is putting a limit on customer acquisition this time, which we also suspect to be THE business model of N26. Looking at this extreme measure, we can't help but wonder about their missing out of potential revenue this could cause. So we believe that the next strategy for N26 to maintain their revenue is to maximize the value of their existing customers. How do you think they could compensate for the lost revenue on customer acquisition? Finally, it is evident that the German regulators are keeping an extra sharp eye on financial institutions after the recent Wirecard scandal. But looking at the severity of this new penalty, Do you think that the BaFin is doing the right thing? Or did they take it a notch too far?