Germany’s financial regulator, BaFin, has identified serious money laundering prevention deficiencies at PAYONE GmbH, a German EMI backed by Worldline and the DWS Group. Following special audits, regulators found systemic failures in AML controls, IT systems, and outsourcing processes. In response, BaFin has twice ordered increased capital requirements—first in October 2024 and again in January 2025.
Key Points:
- BaFin identifies serious deficiencies in PAYONE’s money laundering prevention.
- Orders increased capital requirements on October 15, 2024, and January 20, 2025.
- Violations of proper business organization rules (Section 27(1) ZAG).
- Special audits in 2022 and 2023 flagged failures in IT, outsourcing, and AML compliance.
- PAYONE must rectify deficiencies before restrictions are lifted.
The Story:
BaFin is cracking down on PAYONE (website), an e-money institution owned by Worldline and the DWS Group, for its AML failures. Following special audits, regulators found systemic deficiencies in PAYONE’s IT systems, outsourcing practices, and money laundering prevention controls.
To mitigate risks, BaFin has raised capital requirements twice—first in October 2024 and again in January 2025—under the Payment Services Supervision Act (ZAG). Until the compliance failures are fixed, PAYONE faces strict oversight and higher financial buffers.
Actionable Insight:
This case underscores BaFin’s tightening grip on AML compliance in Germany’s fintech and EMI sector. PAYONE’s big-name backing didn’t shield it from harsh regulatory measures. Expect similar enforcement actions across other e-money and payment service providers.
Call for Information:
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