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FINANCE

Demand for gold exceeds supply as Germans seek safe haven

German gold dealers aren’t taking any more orders as demand for the commodity intensifies due to the global financial crisis, daily Berliner Zeitung reported on Wednesday.

Published: 8 October 2008 08:48 CEST
Demand for gold exceeds supply as Germans seek safe haven
Photo: DPA

“The demand exceeds our capacities by a great deal,” Heiko Ganß, head of precious metal company Pro Aurum told the paper, adding that the run on gold bars and coins is going on worldwide.

“The requests cannot be satisfied right now,” a dealer from the Düsseldorf WGZ Bank confirmed.

Delivery times are also suffering from the gold rush. “The demand for gold as a conservative investment has risen dramatically, Stephan Henkel, a gold dealer for Umicore told the paper, adding that delivery times have risen to between two and four weeks. “Right now the demand is about 10 times as high as in normal times,” he said.

FINANCE

German watchdog steps up monitoring of popular N26 online bank

Germany's financial watchdog on Wednesday ordered online bank N26 to step up "internal controls and safeguards" to prevent money laundering and terrorist financing, and said it was appointing a special representative to monitor progress.

Published: 12 May 2021 18:05 CEST
German watchdog steps up monitoring of popular N26 online bank
An N26 card. Photo: Wikimedia Commons

Bafin’s announcement marks an escalation of previous warnings to the popular Berlin start-up, which has come under fire in the past for not properly verifying the identities of new customers.

“Bafin ordered N26 Bank GmbH to rectify deficiencies both in IT monitoring and in customer due diligence,” the regulator said in a statement.

N26 “is required to ensure that it has the adequate personnel, technical and organisational resources to comply with its obligations under anti-money laundering law,” it said.

A “special commissioner” would oversee the company’s efforts, Bafin added. Founded in 2013 and known for its transparent debit cards, digital bank N26 is one of Germany’s most high-profile financial technology or “fintech” firms and now has seven million customers in 25 countries.

Its rapid growth has rested in part on fast-track identity procedures for new customers.

READ ALSO: What is the digital German bank N26 that’s about to hit a million users?

In 2019, German business weekly WirtschaftsWoche said it had managed to open accounts using forged IDs.

N26 on Wednesday pledged to “work closely” with Bafin and the special representative.

It said it had already significantly increased measures to prevent money laundering in recent years, “but we recognise that more must be done in this area”.

The coronavirus crisis had contributed to a spike in fraudulent online transactions worldwide, N26 added, “increasing the demands placed on banks in the fight against crime”.

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