BaFin Mulls Lifting Cap on N26’s Growth After €9.2 Million Fine

Germany’s financial regulator is considering lifting a cap on the number of new clients that N26 Bank AG can take on after the fintech improved its anti-money laundering controls, according to people familiar with the matter.

BaFin, as the watchdog is known, is considering scrapping the cap as soon as this year, said the people, who asked not to be named as the matter is private. Representatives for BaFin and N26 declined to comment.

For years, the German regulator has been cracking down on startup banks and payment firms, pressuring them to improve their internal controls. With many firms ...