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FRANC

Swiss want central bank to fight franc’s rise: poll

Two out of three Swiss want the country's central bank to stem the franc's rise and over a quarter are calling for an exchange rate ceiling against the euro, according to a poll published on Sunday.

Swiss want central bank to fight franc's rise: poll

The poll, commissioned by the Swiss weekly SonntagsZeitung, found that 63 percent of respondents want further Swiss National Bank (SNB) interventions to stop the currency’s rise.  

The franc, considered a safe haven currency, has risen around 20 percent against the euro and 25 percent against the dollar since 2009, as investors flee economic turmoil abroad.  

The poll of 1,004 conducted between August 18 and 20 also found that 27 percent of respondents wanted the SNB to institute an exchange ceiling against the euro, “aiming at 1.15 or 1.20 francs per euro”.  

It also confirmed consumer complaints that the currency’s rise has not translated into lower prices at home, with a third of respondents saying they had given up purchasing expensive products, and an equal amount saying they went shopping abroad.  

In separate articles, the SonntagsZeitung reported that Switzerland’s supermarket chains were already feeling an impact from cross-border shopping, with Migros, the country’s biggest supermarket mulling job cuts, and Coop, the number two, warning its 2011 growth will be lower than expected.  

Last Wednesday, the Swiss central bank announced the third round of liquidity measures in two weeks to cool demand for the franc. 

But the measure appeared to have limited effect. On Friday, the franc ended the day trading at 1.1307 franc per euro and 0.7851 franc per dollar.

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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.

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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