German digital bank N26 said on 28 May 2024 that the Federal Financial Supervisory Authority (BaFin) had fully lifted the growth restriction on the bank, with effect from 1 June 2024.
Under the restriction, imposed by BaFin in 2021 over shortcomings in N26's controls against money laundering, the bank had been able to take on up to 60,000 new customers per month.
COMPLIANCE INVESTMENT
According to N26, the lifting of the cap followed close cooperation between N26 and the regulator on tackling financial crime and money laundering. N26 said it had invested more than €100 million in compliance and in its infrastructure and teams over the previous two years to combat money laundering and financial crime. Its exchanges with BaFin's special representative will continue until the end of 2024, and the bank said it would keep working with the regulator on combating financial crime.
PROFITABILITY TARGET
N26, which has a team of about 1,500 people and serves customers in 24 European markets, said it expects to reach monthly profitability in the second half of 2024. The bank processes more than €140 billion in transactions a year. The end of the cap allows it to onboard new customers without a monthly limit.
Chief executive Valentin Stalf said the bank was pleased to have the trust of its regulators and would continue its close exchange with them. Co-chief executive and chief operating officer Maximilian Tayenthal said N26's infrastructure and technology allow it to detect and combat fraud and money laundering in real time.
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