[ad_1]
German financial regulator; Baffinis reportedly planning to ease its crackdown on fintech.
Birgit Rodolphe, director general of BaFin, told Bloomberg in a report published Wednesday (February 21) that the move was made after several companies improved their controls.
“We are seeing progress in individual companies, but not all,” Rodolphe said in the report. “There will definitely be cases where restrictions are eased this year.”
Regulators have led a crackdown on neobanks and payments companies, announcing sanctions against about a dozen companies in recent years, according to the report. The measures include caps on the number of customers, bans on certain transactions, and requirements for obtaining approval for business alliances.
The crackdown comes after BaFin failed to stop scandals involving Wirecard, the report said, and led to the appointment of Mark Branson as the regulator’s new head.
Rodolphe, who oversees the anti-money laundering department, acknowledged that increased scrutiny is leading to higher costs for fintech companies, according to the report. BaFin has also appointed an external monitor to monitor the progress of improving the management of sanctioned companies.
According to the report, Rodolphe stressed that the regulator is not singling out payment companies or neobanks, but is closely monitoring the sector to prevent financial crimes. He said one weakness in payment transactions could be an opening for money launderers.
According to the report, regulators are carrying out further checks on supervised companies, including fintech companies, to ensure sustainable improvements.
According to the report, international watchdogs have criticized Germany’s anti-money laundering system, citing a lack of coordination between relevant authorities.
According to the report, Rodolf emphasized the need to increase barriers to entry for money laundering in Germany’s financial system. She aims to carry out inspections on supervised companies in order to encourage sustainable improvements and move into other areas of supervision.
In November 2022, BaFin launched the Fintech Innovation Hub, which aims to foster dialogue between policymakers and companies developing new financial technologies.
This web portal will serve as a regulatory knowledge source and publishing platform, allowing BaFin to communicate its rules with existing and potential FinTech players under its supervision.
[ad_2]
Source link
