The German smartphone bank N26 must pay a fine of 9.2 million euros for suspected cases of money laundering that were reported too late. The German banking supervisor BaFin announced this on Tuesday in Frankfurt am Main.
The German authorities’ allegations against N26 relate to the year 2022. The legally binding fine states that the institute systematically filed reports of suspected money laundering in late 2022.
BaFin pointed out that credit institutions are obliged to report to the Financial Intelligence Unit (FIU) if they suspect that a transaction or other business transaction could be related to money laundering or terrorist financing. “These suspicious activity reports must be filed immediately. This means that the FIU can quickly take further steps if necessary, such as forwarding the case to law enforcement authorities.”
In 2021, BaFin already accused the German start-up of not doing enough to combat money laundering given its rapid growth. At the time, the regulator imposed a fine of 4.25 million euros because N26 had reported too late suspected money laundering practices. A special representative was also appointed to oversee the implementation of anti-money laundering measures at the Berlin-based company.
“Reporting processes improved”
N26 pointed out on Tuesday that the company has taken numerous measures since 2022 to improve its reporting processes. “N26 has invested more than €80 million in the human and technical infrastructure to meet the highest industry standards in the more effective fight against financial crime and money laundering.” The company had already made a corresponding provision for the fine in 2022. “The fine imposed is below the amount of the provision.” N26 continues its collaboration with the regulators.
Founded in 2013 by Viennese Valentin Stalf and Maximilian Tayenthal, N26 operates in 24 countries in Europe and employs around 1,500 people, including around 1,000 in Berlin.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
