Varengold Bank has announced that the supervisory measures mandated by the German financial regulator as part of its special audit will be lifted at the end of the month.
The appointment of the special representative will also end on 31 October 2025, the Hamburg-based bank said.
The German Federal Financial Supervisory Authority (BaFin) ordered the special audit of the bank in 2023, which led to restrictions in its payment transaction business.
It emerged that year that the regulator had “intensively examined” Varengold’s payment transaction business in the commercial banking division, due to possible compliance violations.
Then in February 2024, Politico revealed that the Hamburg-based bank was used by Iran to funnel money to terror organisations.
BaFin did not mention any suspected links to Iran when it announced its investigation into the bank, and only cited money laundering concerns.
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Varengold denies any wrongdoing.
“Beyond the measures already communicated in the press release, BaFin has not announced any further consequences or fines in connection with the special audit,” Varengold said.
“The completion of the special audit is an important milestone in the bank’s transformation. With a clear strategy and optimised structures, the bank will continue to pursue its business objectives with commitment.”
The regulatory audit has put pressure on Varengold’s profitability.
In April this year, it announced that it was cutting its 2024 earnings guidance for the second consecutive month, after creating an additional reserve buffer to cover potential risks from the regulator’s special audit of the troubled bank.
