Germany’s financial regulator, BaFin, has fined online bank N26 a hefty €9.2 million ($10 million) for its systematic delays in filing reports of suspected money laundering during 2022. The penalty highlights the ongoing regulatory scrutiny faced by financial institutions in ensuring compliance with anti-money laundering (AML) regulations. N26 repeatedly failed to promptly submit reports to the Financial Intelligence Unit (FIU).
BaFin’s investigation revealed that N26 repeatedly failed to promptly submit reports to the Financial Intelligence Unit (FIU) when transactions raised suspicions of money laundering or terrorist financing. According to BaFin, the timely submission of such reports is critical for enabling authorities to take swift action when necessary.
In response to the fine, N26 issued a statement acknowledging the shortcomings identified by BaFin. The bank emphasized that since 2022, it has implemented numerous measures aimed at enhancing its reporting processes. These measures include significant investments of over €80 million to strengthen its AML and financial crime prevention systems.
N26 assured stakeholders that it has made ample provisions to cover the fine. The bank also reiterated its commitment to maintaining a close and cooperative relationship with regulatory authorities, emphasizing its dedication to adhering to the highest standards in combating financial crime and money laundering.
