N26 Fined €9.2 Million by BaFin for Reporting Failures in Money Laundering Controls

Online bank N26 has been hit with a €9.2 million fine by BaFin, Germany’s financial regulator. BaFin identified issues related to the requirement for credit institutions to submit reports to the Financial Intelligence Unit if they suspect a transaction may be connected to money laundering or terrorist financing. The regulator emphasized that these reports must be submitted promptly to allow authorities to take swift action if necessary.

In response to the fine, N26 acknowledged that it was due to “shortcomings in reporting suspicious activity in 2022.” The company stated that since 2022, it has implemented numerous measures to enhance its reporting processes. “From 2022 onwards, N26 implemented numerous measures to further improve reporting processes,” the bank said in its statement.

N26 highlighted that it has invested over €80 million in personnel and technical infrastructure to uphold the highest industry standards in combating financial crime and money laundering. The company also noted that it had anticipated a potential fine and set aside provisions in its 2022 annual financial statements, with the current fine being less than the amount provisioned.

“The company already set aside provisions for a potential fine in its 2022 annual financial statements, and the current fine is less than the provision set aside,” the statement read. N26 reaffirmed its commitment to working closely with regulators on all related matters, stating, “N26 will continue its close and trusted collaboration with its regulators on all related topics.”

By fLEXI tEAM