The latest news on German fintech Raisin reveals that the company has been hit with a remediation order by the German Federal Financial Supervisory Authority (BaFin) concerning anti-money laundering (AML) issues. This measure signals increased regulatory scrutiny on Raisin, one of Europe’s prominent fintech firms, as BaFin enforces more stringent AML compliance standards within the financial sector.
BaFin’s Role and Context of the Order
BaFin, Germany’s financial regulatory authority, plays a pivotal role in overseeing AML compliance under the German Money Laundering Act (Geldwäschegesetz – GwG). The authority regularly updates its interpretation and application guidelines to align with evolving regulatory requirements focusing on due diligence, risk management, and remedial actions in cases of non-compliance. BaFin’s regulatory framework demands that all supervised entities, including fintechs, maintain effective AML risk management systems and appoint responsible officers to oversee these measures. Failure to comply with these obligations can lead to administrative actions such as remediation orders, fines, or other sanctions.
Details of the Remediation Order and Raisin’s Response
Raisin faced the remediation order after BaFin identified shortcomings in its AML processes. These issues possibly relate to Raisin’s internal controls, customer due diligence (CDD), ongoing monitoring of transactions, or reporting of suspicious activities. The precise nature of the AML deficiencies found has not been fully disclosed publicly, but the remediation order typically requires the company to undertake corrective actions promptly and to enhance its AML systems to meet regulatory standards.
In response, Raisin has publicly acknowledged the order and committed to addressing all identified AML issues in full cooperation with BaFin. The company aims to strengthen its internal compliance frameworks, increase staff training, and upgrade technological tools to ensure comprehensive customer verification and ongoing monitoring mechanisms. Raisin emphasizes its dedication to meeting all regulatory requirements and maintaining the highest standards of financial integrity and transparency.
Regulatory Environment and AML Requirements in Germany
Germany’s AML requirements have recently been enhanced with updated AML guidance issued by BaFin. The guidance, effective from February 2025, demands clearer risk assessment, closer scrutiny of politically exposed persons (PEPs), tighter customer data update cycles, and stricter documentation of AML activities. Additionally, BaFin expects the appointment of dedicated AML officers within regulated entities, with clearly defined responsibilities and capabilities to conduct independent monitoring and reporting.
The supervisory body has also tightened standards for suspicious activity reporting. BaFin now requires prompt reporting and a shortened risk classification period for customers following a suspicious report. For instance, suspected money laundering triggers increased due diligence obligations for 21 calendar days as opposed to the previous three months, expediting the responsiveness of financial institutions to potential risks.
Implications for Fintechs and the Sector
Raisin’s remediation order is a reminder that fintech firms operating in Germany face rigorous scrutiny under BaFin’s supervisory framework. Due to the sector’s innovative nature and rapid growth, ensuring compliance with AML laws is both crucial and challenging. Fintechs must embed AML best practices into their business models, leveraging advanced technology for better transaction monitoring and customer risk profiling.
The order also highlights BaFin’s proactive stance on enforcing AML compliance to safeguard financial stability and prevent the misuse of financial services for criminal purposes. Fintechs and other financial institutions are advised to conduct regular reviews of their risk management systems and cooperate transparently with regulators to avoid penalties or enforcement actions.
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In summary, German fintech Raisin has been issued a remediation order by BaFin due to identified AML compliance issues. Raisin is actively addressing these concerns by upgrading its AML controls and cooperating fully with BaFin. This development reflects the broader regulatory tightening in Germany’s financial sector, where BaFin enforces strict AML standards to prevent money laundering and protect market integrity. Fintech entities operating in Germany must remain vigilant and responsive to these evolving regulatory requirements to ensure compliance and sustain trust.
AML Editor’s article was originally published in amlintelligence on August 25, 2025