Ewelina Kolodziejczyk

Investing in anti-FinCrime tools and real-time transaction monitoring makes sense even if you are already in dispute with your regulator over gaps in your AML/CFT system. This is evidenced by the news that Germany's financial regulator, BaFin, has lifted growth restrictions on N26 after the digital bank made improvements to its AML/CFT program. BaFin had previously capped the number of new customers the neobank could add each month at 60,000, which, in view of their past growth, was quite a show stopper. What did N26 do to persuade the regulator to lift the restrictions? ☑ The bank says (link to the press release below 👇) it has invested more than €100 million in compliance and its infrastructure over the past two years. ☑ The bank's compliance teams were ready to "effectively combat money laundering and financial crime as it prepared to onboard a higher number of new customers". ☑ N26's new systems will "analyze the fraud potential of individual customers" and include real-time monitoring of transactions for potential fraud. Prior to the growth cap, N26 was onboarding 170,000 new customers per month and expected to reach monthly profitability in the second half of 2024, so the investment in AML/CFT systems directly contributed to the bank's faster growth. #N26 #BaFin #AML #CFT #ComplianceInvestments

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Spotlight Powered by - AML Penalties Commerzbank AG is a global German universal bank headquartered at Commerzbank Tower in Frankfurt. The bank was founded in Hamburg in 1870 and is today among the largest credit institutions in Germany. The Federal Financial Supervisory Authority - BaFin has imposed a fine of USD 1,545,076 (EUR 1.45 Mn) on Commerzbank AG for breaching its anti-money laundering (AML) laws. The bank did not update customer data on time and did not provide proper security measures, which resulted in inadequate due diligence in three cases, thus violating its anti-money laundering obligations. To read more, please click: https://zurl.co/VFLw Subscribe to AML Penalties @ https://zurl.co/343z for more insights & updates. Visit our website: https://zurl.co/PWxy #antimoneylaundering #amlpenalties #aml #financialcrimes #moneylaundering #amlcompliancefailure #compliancefailure #bafin #germany #commerzbank #amlviolations #breach #law

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BaFin, the German regulator, has fined N26 €9.2 million due to anti-money laundering failures, specifically late submission of suspected money laundering reports in 2022. This comes after previous fines and a temporary cap on new customer intake, set at 50,000 per month, due to ongoing deficiencies in N26's systems. BaFin has demanded improvements in IT monitoring, quality assurance, and outsourcing controls. However, there are reports suggesting that BaFin may lift the customer intake limit this year. N26 has responded by stating that it has implemented measures to improve reporting processes and invested heavily in personnel and infrastructure to combat financial crime and money laundering. Interesting? Want to read more? Click the link Below https://lnkd.in/dNgJqdT9 #n26 #antimoneylaundering #regulatorycompliance #financialcrime #bankingnews #bafin #fintech #customerintake #compliance #moneylaundering

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🔔 Attention VASPs in the Czech Republic: New AML Law Amendments Effective As of May 1, 2024, the Czech AML Law (Act No. 253/2008 Coll.) has been amended, impacting all VASPs under the Financial Analytical Office (FAU) supervision. https://lnkd.in/gar4fh6i Mihhail Šerle, Senior Partner at Gofaizen & Sherle, provides an accessible overview of these pivotal changes. Stricter Identification Requirements VASPs must now gather additional details, including the ID card number, issuing authority, and expiration date. The "country of origin" definition has expanded beyond the previous "country of establishment," affecting: Natural Persons: States of nationality, residence registration, or residence exceeding one year. Legal Entities: States of registered office or business operations. An exception permits VASPs to forego client identification during FAU investigations. Remote Identification Flexibility VASPs can now use the test payment method for identification, accepting payments from all countries except high-risk third countries. This marks a departure from the previous EEA-only account requirement. Internal Policy Provisions VASPs must submit their AML-compliant internal policies to the FAU within 60 days of establishment and report any policy changes within 30 days. Policies must be in Czech or Slovak, as per FAU guidelines. Existing VASPs have until May 31, 2025, to comply. Non-compliance could result in fines up to CZK 1,000,000 (~€40,000). For more information, please do not hesitate to contact us via email at info@gofaizen-sherle.com To stay updated, subscribe to our Telegram channel https://lnkd.in/gu4Zukrw

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#BaFin has levied a 1.4MM Euro fine against Commerzbank AG for inadequate monitoring of AML obligations. The Bank did not update customer #data on time or sufficiently and did not apply #EDD for three, high-risk clients. This enforcement touches on three hot regulatory topics: 1. Access to relevant and up-to-date data for critical compliance functions. 2. Risk mitigation of Politically Exposed Persons. 3. Risk-based customer due diligence to recognize shell companies and anonymous registration of companies. The Commerzbank action is similar to others from the FCA and the U.S. While for many years data requirements have followed an industry best practices model, regulators are more frequently addressing AML and Sanctions systems directly. For instance, EU regulations require #model #validators to have access to the data necessary to perform their duties, and #OFAC's FAQ 335 requires broker dealers to monitor for changes in value, volume and product among high-risk customers. A definition of good data quality to design your data program around is key to meeting regulatory expectations. A testing program that investigates the "dimensions" of data quality and issues stemming from within the firm and those originating from outside sources such as customers will help management understand whether their program's effectiveness is impacted by data quality. "Timely" and "accurate" are two dimensions of data quality that BaFin has highlighted here. https://lnkd.in/eeGTSS7w

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Restrictions on transfers between cards Felix Aronovich, partner at SYROTA DZIS MELNYK & PARTNERS, told Ekonomichna Pravda about what will change for crypto owners when the NBU imposes restrictions on inter-card transfers. The National Bank plans to introduce limits on the transfer of funds between bank cards of individuals up to 100 000 ₴ and limit the number of transactions to 30 per account per month. According to the deputy head of the NBU, this decision is intended to combat the illegal gambling business that is flourishing in Ukraine and other illegal ways of using bank cards. As for money transfers for volunteer purposes, according to the NBU, they do not plan to limit incoming transactions, which may complicate the activities of volunteers. In addition, in case of confirmation, the limits may be increased as an exception. For more information on the reasons for this decision and banks' reporting on customer transactions, please read our expert's article here:  https://lnkd.in/eBDaS8As According to Mr. Aronovych, entrepreneurs who are currently operating with cryptocurrencies may have problems with transactions with such assets in the future. However, it is currently unknown what sanctions the NBU will impose in the future.

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The Finance WG welcomes ESMA's Guidance on Reverse Solicitation and the Classification of Crypto-Assets. ESMA’s work is a step toward the proper implementation of crypto-asset requirements in Europe, and around the globe. The Finance WG members collected feedback and reviewed the ESMA guidance across multiple calls and in depth discussions before submitting a few key themes for refinement. INATBA Members believe that a more balanced approach can ensure a dynamic market for Crypto-Assets in Europe. Overall, we recognize ESMA's efforts to guide crypto assets identification, however we believe the current criteria would benefit from further refinement, and further industry outreach, to address existing complex scenarios. INATBA reaffirms its commitment to working with regulators to refine guidelines, foster innovation, and protect investors. To review the full response, please visit this link: https://lnkd.in/daxB7qhZ Special recognition belongs to our member companies who provided feedback for this workstream: Blockchain.com Onchain Foundation Notabene AMLBot Groupe Caisse des Dépôts Dépôts Anotherblock Cryptopocket | Fiat ramp on/off NORTHSTAKE  token.com ProSquare Software Systems Imani Partners

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On May 2, 2024, the European Banking Authority (EBA) have commenced the collection of personal data through EuReCA - the European Reporting System for Material CFT/AML Weaknesses. This system, launched on January 31, 2022, serves as the AML/CFT database of the EBA. EuReCA is designed to house information on significant AML/CFT deficiencies within individual financial institutions as identified by EU supervisors. The gathered data is processed with the aim of identifying and analyzing material weaknesses, as well as any natural persons associated with these weaknesses. The data to be collected from financial sector operators or branches includes: 1.      Customers or beneficial owners: •      Name, surname, date of birth, country of residence, nationality. •      Position as a member of the management body or a key function holder within the financial sector. •      Direct or indirect shareholding in the financial sector operator or branch. •     High-risk classification by the financial sector operator. 2.      Members of the management body or key function holders: •      Name, surname, date of birth, country of residence, nationality. •      Role within the financial sector operator or branch. 3.      Any natural person appears to be linked to material weaknesses. The European Banking Authority (EBA), along with the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA), are the primary controllers of this information. Visit our website: https://www.rzolut.com/ #EBA #AML #AMLCFT #Supervision #ESMA #EIOPA #EU # EuReCA

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LATEST: Germany's Commerzbank AG has been fined €1.45M for #AML failings at a subsidiary, regulator BaFin announced today (Mon). We report. Also today, in Britian the Financial Conduct Authority's plans to 'name and shame' banks more often and at the outset of inquiries are set for the scrapheap. The proposals have met an unprecedented backlash from #government, #banks and #lawyers. The 'name and shame' plan was outlined amidst much fanfare in February in the FCA's new 'bad cop, bad cop' approach to regulation. But as the City of London warned the regulator was driving financial institutions out of Britain, the plan is set for the sidings. We report. #followthemoney #aml #cft #compliance #banks #banking #fintech #finreg #regtech #FCC Stephen Rae James Treacy Alisha H. https://lnkd.in/egqYJp-D

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In a significant enforcement action, BaFin, the financial supervisory authority in Germany, has imposed a fine of €12,975,000 on Citigroup Global Markets Europe AG for violations under the Securities Trading Act (WpHG). Key Details: - Reason for Fine: In May 2022, Citigroup Global Markets Europe AG failed to have appropriate systems and risk controls to ensure trading thresholds and limits were met. This lapse allowed erroneous orders to be transmitted, contributing to market disruptions. - Outsourcing Issues: The company had outsourced its monitoring and administration system for algorithmic trading to Citigroup Global Markets Limited in London. Despite the outsourcing, Citigroup Global Markets Europe AG is still responsible for the proper design and operation of its trading systems. - Market Disruption: A manual input error by a trader led to incorrect orders being transmitted, causing a market disruption. Background: Investment services firms engaged in algorithmic trading must maintain resilient trading systems with appropriate thresholds and limits to prevent market disruptions. Algorithmic trading, where a computer algorithm determines order parameters, differs from high-frequency trading, which involves high-performance computers executing trades without human intervention. Regulatory Implications: - Compliance Requirements: Firms must ensure their trading systems are robust and can handle the high risks associated with capital markets. - Penalties for Non-Compliance: Violations of Section 80 Paragraph 2 Sentence 3 of the WpHG can result in fines up to five million euros or up to ten percent of total sales. Follow Global Regulatory Insights for the latest updates on regulatory changes and their implications. #RegulatoryUpdate #Citigroup #BaFin #SecuritiesTradingAct #WpHG #Compliance #AlgorithmicTrading #GRI #FinancialRegulations

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🌟 N26 Achieves Major Milestone: Lifting of BaFin Growth Restriction! 🌟 N26, the European digital bank, has successfully lifted the growth restriction imposed by BaFin, the German Federal Financial Supervisory Authority, effective June 1, 2024. This landmark achievement follows close cooperation between N26 and BaFin to address financial crime and money laundering concerns. 🏦🚀 🔍 Key Takeaways: 🏛️ Regulatory Success: N26 met stringent regulatory requirements to lift BaFin’s growth cap. 🌐 Growth Potential: N26 can now meet increasing demand, beyond the previous limit of 60,000 new customers per month. 🤝 Ongoing Cooperation: Continuous dialogue with BaFin ensures compliance and innovation in financial services. Read more about this achievement here: https://buff.ly/4bYvCON #Fintech #RegTech #N26 #BaFin #FinancialCompliance #DigitalBanking

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Ukrainian and German Financial Supervisory Authorities Expand Partnership "On 17 June, BaFin President Mark Branson and NSSMC НКЦПФР Chairman Ruslan Magomedov signed an institutional partnership agreement in Bonn. By doing so, the two supervisory authorities are expanding the cooperation they announced earlier this year." https://lnkd.in/gwffvKTu #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

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Breaking news from Germany: N26 announces that the new customer limit imposed by Bafin has finally been lifted! #N26, the German #fintech founded in 2013, has announced that restrictions imposed by the German financial watchdog BaFin on its customer growth will be lifted on June 1, 2024. This cap had limited N26 to 60,000 new customers per month since 2021 due to concerns over money laundering controls. The neo-bank, which serves approximately eight million clients across 24 countries, faced these restrictions after BaFin raised concerns about the bank's efforts in promptly reporting suspicious activities related to money laundering. This situation also led to a multi-million-euro fine and increased oversight from BaFin. Earlier this month, N26 was penalized €9.2 million for shortcomings in its anti-money laundering measures identified in 2022, adding to an initial fine of €4.25 million in 2021. CEO Valentin Stalf emphasized that N26 has made significant strides in enhancing its anti-money laundering and financial crime prevention measures. The bank has invested €100 million in compliance, infrastructure, and team expansion since late 2021. Stalf reaffirmed N26’s commitment to maintaining a "close exchange" with regulators to ensure continued progress in these areas. The lifting of the customer growth cap marks a critical turning point for N26, allowing it to resume its rapid expansion and continue its mission to revolutionize online banking. With this newfound regulatory flexibility, N26 is poised to grow its customer base more aggressively and strengthen its position as a leading digital bank in Europe. The article on #RTE on the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://t.ly/s541W   - Substack: https://lnkd.in/dzfGJzmW

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🎉 We are thrilled to share the newly published AML/CFT Yearly Report from the Austrian Financial Market Authority (FMA)! 💰 This report offers deep insights into the latest trends and strategies in Anti-Money Laundering and Combating the Financing of Terrorism. It's essential reading for anyone in the financial industry. 👏 A special shoutout to the AML/CFT team for their hard work and dedication to maintaining our financial system's integrity. 🌍 In the European context, the new AML authority, AMLA, will enhance cooperation among EU member states in fighting financial crime. A significant step forward! 🚀 Austria is also preparing for the upcoming FATF evaluation, crucial for assessing our AML/CFT framework and ensuring international standards. Additionally, the introduction of MiCAR (Markets in Crypto-Assets Regulation) adds another layer of complexity to the regulatory landscape. 🔗 Link to English version: https://bit.ly/4cO6YAQ 🔗 Link to German version: https://bit.ly/3DpbiH2 #AML #MiCAR #AMLA

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N26, a Berlin-based banking startup, faced regulatory scrutiny from BaFin, resulting in a cap on new customer signups in 2021. This cap, initially set at 50,000 customers per month and later increased to 60,000, will be lifted on June 1, 2024. N26 incurred a €9.2 million fine for reporting shortcomings in 2022 and has invested €100 million in compliance improvements. The company has added savings accounts, loans, crypto and stock trading, and insurance products to its offerings. N26 reported a €100 million loss in 2023 and expects to achieve monthly profitability in the second half of 2024. For the latest secondary coverage and trading SaxonWeber | ShareWell #secondaries #saxonweber

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