Despite criticisms from Bafin, N26 continues to welcome new customers.

In the world of digital banking, N26 is currently under the microscope of Germany's financial regulator, Bafin. The co-founder of N26, Maximilian Tayenthal, expects a decision from Bafin regarding the possible reappointment of the special commissioner overseeing the bank's internal processes in the coming weeks.

The special commissioner, appointed temporarily by Bafin, is responsible for monitoring N26's regulatory compliance. This appointment was made in response to concerns raised by Bafin about the bank's internal processes. The commissioner's role is to ensure that N26 adheres to regulatory requirements and improves its compliance levels.

The extension of supervisory measures for money laundering prevention at N26 by Bafin is a testament to the ongoing scrutiny the bank is facing. However, Bafin has not issued a public statement specifically about the possible reappointment of the special commissioner at N26.

N26's regulatory woes began when it was revealed that the bank did not pay enough attention to regulatory topics during its early stages. This admission came after an interim report released by Bafin was described as "devastating" by media outlets. The report raised questions about the amount of credit N26 could lend to its customers and highlighted control system shortcomings.

As a result, Bafin imposed a limitation on N26's new customer growth, limiting the number of registrations per month to a maximum of 50,000. This measure is intended to address regulatory concerns and ensure that N26 can manage its operations effectively.

In response to the report, co-founder Valentin Stalf announced he would step back from his role as co-CEO and transition to the supervisory board. Effective September 1st, Marcus Mosen became the new co-CEO of N26.

Tayenthal, in a statement at the Handelsblatt Banking Summit in Frankfurt, assured that Bafin does not plan to impose a cap on new customer numbers. He also mentioned that N26 has not yet reached the level it desires in terms of regulatory compliance.

In a positive development, former Bundesbank board member Andreas Dombret will take over as the new chairman of N26's supervisory board in October. His extensive experience in the financial sector is expected to provide valuable insights and guidance as N26 navigates through this challenging period.

The fine imposed on N26 by Bafin, amounting to €9.2 million, is related to delayed suspicious activity reports and control system shortcomings. The fine will take effect in 2024.

As N26 continues to work towards improving its regulatory compliance, the decision on the reappointment of the special commissioner is highly anticipated. The bank's future regulatory standing will significantly impact its growth and operations.