BaFin orders Crefo Factoring Westfalen to remedy control failures

BaFin ordered Crefo Factoring Westfalen GmbH to remedy deficiencies in its business organization in an order that became legally binding on 17 July 2026.

The Münster-based financial services institution must ensure that its organization complies with applicable requirements, according to the supervisory order published on 28 July 2026.

A special examination conducted in the fourth quarter of 2025 found that the firm’s business organization was not properly established. BaFin said the deficiencies affected the compliance function, internal audit and other parts of the internal control system.

The regulator said the deficiencies meant that Crefo Factoring Westfalen GmbH breached requirements under the Kreditwesengesetz. Section 25a(1) KWG sets requirements for an orderly business organization, including arrangements to support compliance with legal obligations and necessary business controls.

The order rests on Section 25a(2), sentence 2, KWG, which allows BaFin to require an institution to remedy identified deficiencies. BaFin applied that power to Crefo Factoring Westfalen GmbH.

The notice does not describe the individual control failures, specify a remediation plan or provide a completion deadline. It also does not say whether BaFin imposed a fine or another sanction.

The notice identifies the affected institution and the control areas covered by the examination, but provides no further detail on remediation status. The population affected beyond Crefo Factoring Westfalen GmbH is not disclosed.

For the firm, the immediate compliance task is to correct the weaknesses identified in the compliance function, internal audit and related internal-control areas. The notice does not specify which policies, reporting lines or testing arrangements must change.

Publication of the measure follows Section 60b(1) KWG. The unresolved question is when Crefo Factoring Westfalen GmbH must complete the remediation, since BaFin’s notice sets no deadline.