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German watchdog BaFin orders N26 to pay $5 million fine

Published 09/28/2021, 02:58 PM
Updated 09/28/2021, 03:01 PM
© Reuters. FILE PHOTO: A N26 logo is seen in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration

FRANKFURT (Reuters) - German financial regulator BaFin ordered online bank N26 to pay 4.25 million euros ($4.98 million) for delayed reports of suspicious activity in 2019 and 2020 in the area of anti-money laundering, the bank said in a statement.

N26 said the fine was paid in full on July 14, adding all related proceedings have been closed. The bank said the case related to fewer than 50 activity reports, adding that BaFin would make the fine public shortly.

"N26 takes its responsibility in the fight against the growing threat of global financial crime, and in the prevention of money laundering, very seriously," the group said.

In May, N26 was ordered by BaFin to put in place internal controls and safeguards to prevent money laundering and terrorist financing.

© Reuters. FILE PHOTO: A N26 logo is seen in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration

The move came after sources earlier this year said that BaFin had extended its oversight of N26 to cover the whole company, as the watchdog tightens controls following last year's collapse of payments firm Wirecard.

($1 = 0.8537 euros)

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