Money laundering reports

Banking regulator fines N26 millions

According to the supervisory authority, N26 is said to have systematically submitted suspicious money laundering reports late.

(Bild: N26)

The German smartphone bank N26 must pay a fine of 9.2 million euros for late reporting of suspected money laundering. This was announced by the German banking supervisory authority BaFin in Frankfurt am Main on Tuesday.

The German authority's accusations against N26 relate to the year 2022. The legally binding fine notice states that the institution systematically submitted suspicious money laundering reports late in 2022.

BaFin pointed out that credit institutions are obliged to submit a report to the Financial Intelligence Unit (FIU) if they suspect that a transaction or other business event could be related to money laundering or terrorist financing. "These suspicious activity reports must be submitted immediately. This allows the FIU to take further steps quickly if necessary, such as forwarding them to law enforcement authorities."

In 2021, BaFin had already accused the German start-up of doing too little to combat money laundering during its rapid growth. At the time, the supervisory authority imposed a fine of 4.25 million euros because N26 had submitted suspected money laundering reports late. A special representative was also appointed to monitor the implementation of anti-money laundering measures at the Berlin-based company.

"Reporting processes improved"
N26 pointed out on Tuesday that the company has implemented numerous measures to improve its reporting processes since 2022. "N26 has invested more than 80 million euros in human and technical infrastructure to meet the highest industry standards in combating financial crime and money laundering more effectively." The company had already formed a corresponding provision for the fine in 2022. "The fine imposed is below the amount of the provision." N26 is continuing its cooperation with the supervisory authorities.

N26, founded in 2013 by the Viennese Valentin Stalf and Maximilian Tayenthal, is active in 24 countries in Europe and employs around 1,500 people, including around 1,000 in Berlin.