In brief: BaFin imposes new restrictions on N26

New twist in the history of N26 and its complicated relations with regulators. The German Federal Financial Supervisory Authority (BaFin), which lightened The growth restrictions imposed on the neobank in May 2024, finally limited its expansion again.

The BaFin imposes enhanced supervision and restrictions on the German neobank N26 for repeated compliance breaches, marking a further halt to its international development. This decision follows an audit conducted in 2024, which highlighted violations of German banking law, particularly in the organization of the credit business.

The BaFin thus orders, for the second time, close control of the neobank through the appointment of an external "special monitor" to monitor N26, due to "serious deficiencies" in risk management and claims processing.

N26 is thus prohibited from offering new real estate loans in the Netherlands and must strengthen its own funds.

A new rebound

N26 had already been sanctioned in 2021 for weaknesses in the fight against money laundering and forced to limit the acquisition of new customers, which had pushed him to leaving the American market to focus on Europe.

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