The mobile bank N26 must pay a fine of €9.2 million ($10 million) for late reporting of suspected money laundering, Germany's banking supervisory agency BaFin said in Frankfurt on Tuesday.
The agency's fine notice states that the institution systematically submitted suspicious money laundering reports late in 2022.
BaFin noted that credit institutions are obliged to submit a report to the Financial Intelligence Unit (FIU) if they suspect that a transaction or other business event could be related to money laundering or terrorist financing.
"These suspicious activity reports must be submitted immediately. This enables the FIU to take further steps quickly, if necessary, such as forwarding them to law enforcement authorities," BaFin stated.
In 2021, BaFin had accused the German start-up of doing too little to combat money laundering during its rapid growth. At the time, the supervisory authority imposed a fine of €4.25 million because N26 had submitted suspected money laundering reports late. A special representative was also appointed to monitor the implementation of anti-money laundering measures at the Berlin-based company.
N26 said on Tuesday that the company has implemented numerous measures to improve its reporting processes since 2022.
"N26 has invested more than €80 million in personnel 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 provision for the fine in 2022. It noted that the fine imposed is less than the provision.
N26 is continuing to cooperate with the supervisory authorities, it said.
N26 is active in 24 European countries and employs around 1,500 people, including around 1,000 in Berlin.