BaFin, the German financial regulator, has issued a €9.2 million fine to N26 for lapses in anti-money laundering procedures. This action comes after BaFin’s investigation revealed that N26 consistently delayed the submission of suspected money laundering reports in 2022.
The fine marks the latest development in an ongoing scrutiny of N26’s anti-money laundering controls. In 2021, BaFin levied a €4.25 million fine on the bank and imposed a temporary restriction on the number of new customers N26 could onboard monthly. This limitation, initially set at 50,000 new customers per month, remains enforced. Additionally, BaFin has stationed auditors at the bank to oversee improvements.
Last July, BaFin extended the customer limit, citing persisting shortcomings in N26’s systems. The extension was accompanied by demands for enhanced IT monitoring, strengthened quality assurance measures, and more robust outsourcing controls.
Despite these challenges, Bloomberg reports that BaFin is contemplating lifting the customer limit possibly this year.
In response, N26 stated that it has implemented various measures since 2022 to enhance its reporting processes. The bank also emphasized its substantial investment of over €80 million in personnel and technical infrastructure to uphold rigorous standards in combating financial crime and money laundering.
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