Norddeutsche Landesbank ordered by BaFin to overhaul money‑laundering controls

Germany’s financial regulator BaFin has issued a formal order to Norddeutsche Landesbank (Nord LB) to remedy significant shortcomings in its anti‑money‑laundering and terrorism‑financing safeguards. The regulator identified major gaps in the bank’s customer‑data management, noting that many records are outdated or incomplete, which it classifies as a concrete risk rather than a cosmetic error. Nord LB must develop and implement a remediation concept, bring all client data up to date, and regularly report progress to BaFin. The order, effective 14 June 2026 and published on 3 August 2026, does not disclose the number of affected customers or specific deadlines. In parallel, BaFin announced an expansion of its supervisory remit to include AI systems across the financial sector, signalling tighter governance of algorithmic tools used by banks.