By PAUL O’DONOGHUE, Senior Correspondent
RAISIN, one of Europe’s most prominent fintech firms, has been hit with an AML (anti-money laundering) remediation order.
Regulator BaFin stated it ordered Raisin Bank AG to address a series of compliance ‘deficiencies’.
Problems identified at Raisin Bank AG included:
- Risk analysis
- Customer risk assessment
- IT monitoring
- ‘Fulfillment of the anti-money laundering officer’s duties’. T
“On December 18, 2023, the supervisory authority therefore ordered the remediation of the deficiencies,” BaFin stated in a statement.
“These deficiencies have significant implications for the institution’s ability to prevent money laundering and terrorist financing.”
The company has since addressed the AML problems raised by the German regulator.
It stated: “Raisin Bank’s internal audit and the external audit firm have confirmed that the deficiencies have been remedied.”
Raisin AML issues
Raisin Bank AG is a subsidiary of Berlin-based fintech Raisin. The company is best known for its interest rate comparison platform.
The company expanded into banking in 2019 by acquiring MHB Bank, later renamed Raisin Bank. The unit handles transactions for Raisin’s own platform and provides services to other fintechs.
Founded in 2012, Raisin ranks among Europe’s largest fintechs. Through its platform, customers can compare deposit offers and invest with banks abroad. Deposits placed through the platform now total about €75 billion. The fintech operates in ten countries including the United States.
BaFin is also weighing whether to classify Raisin as a financial holding company, which would bring stricter oversight. At present, the regulator supervises Raisin Bank but not its parent, Raisin SE.
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