Thursday, October 28, 2021

German watchdog BaFin fines N26 for delayed money-laundering reports


Germany’s financial watchdog BaFin has issued a fine to digital bank N26 for delayed reporting of suspicious money-laundering activity, the bank said on Tuesday.

BaFin ordered N26 to pay 4.25 million euros ($5.0 million) in June related to the delayed submission of suspicious activity reports “in the area of anti-money laundering,” in 2019 and 2020.

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The fine, related to fewer than 50 reports, was paid on July 14, Berlin-based N26 said, adding that all proceedings have been closed.

In May, the regulator ordered N26 to implement internal safeguards to prevent money laundering and terrorist financing, including by rectify deficiencies in IT monitoring and customer due diligence.

The action comes as BaFin struggles to recover from reputational damage over its oversight of payments provider Wirecard AG, which collapsed in 2020.

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N26, which is eyeing an initial public offering, said it “takes its responsibility in the fight against the growing threat of global financial crime, and in the prevention of money laundering, very seriously.”

The digital bank is reportedly in fundraising talks with early Spotify investor Dragoneer Investment Group that would value it at around $10 billion, making it one of Europe’s most valuable fintechs, Sky News reported earlier this week.


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