The Federal Financial Supervisory Authority (BaFin) has issued a consumer warning concerning Morgans Finance, which is reportedly offering unauthorized banking and financial services through its website. This announcement was made in a news release on January 16, 2025.
According to BaFin, the website morgans-finance.com is under suspicion as Morgans Finance, allegedly based in Frankfurt, is believed to be providing financial services without the required authorization. In Germany, only companies authorized by BaFin are allowed to offer such services. Individuals can verify a company's authorization status through BaFin's database.
Section 37 of the German Banking Act (KWG) empowers BaFin to take action against unauthorized banking activities or financial services. If a company operates without necessary licenses or engages in prohibited transactions, BaFin can order the cessation of operations and appoint a liquidator for settlement. The authority also has the power to inform the public if a company is suspected or found to be engaging in unauthorized activities. Should this information prove false, BaFin is obligated to correct it, according to the Federal Ministry of Justice of Germany.
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BaFin oversees the stability and integrity of Germany's financial system. It supervises banks, financial services institutions, payment institutions, e-money institutions, insurers, asset managers, and other related entities. Its responsibilities include solvency supervision and market supervision to ensure fair and transparent conditions while preventing misuse for money laundering or terrorist financing.