Frankfurt, Düsseldorf Blow for Germany’s best-known smartphone bank N26: Financial supervisory authority BaFin is considering restricting new business from the fast-growing Berlin start-up, as several people familiar with the subject have confirmed to Handelsblatt.

The Authority is dissatisfied that N26 has still not addressed serious deficiencies in the organization or in the fight against money laundering and other illegal transactions. “Bank supervisors have lost patience,” said one observer.

Baffin did not want to comment on the information. A spokesperson for N26 said the institute could not comment on “the details of our cooperation with regulators”. “But we are in regular contact on all important topics and work closely with supervisory authorities.” Recently it was revealed that criminals could have used multiple N26 accounts for fraudulent purposes.