BaFin Orders Digital Bank to Pay About $5 Million Over Delay in Submitting Suspicious Activity Reports
Berlin-based N26 said fines related to less than 50 reports were paid on July 14, adding that all proceedings have been closed.
In May, the regulator ordered N26 to implement internal security measures to prevent money laundering and terrorist financing, including rectifying deficiencies in IT surveillance and customer due diligence.
The action comes as BaFin struggles to recover from reputational damage caused by its oversight of payments provider Wirecard AG, which collapsed in 2020.
N26, which is considering an initial public offering, said it “takes its responsibility very seriously in the fight against the growing threat of global financial crime and in the prevention of money laundering.”
Sky News reported earlier this week that the digital bank is reportedly in fundraising talks with early Spotify investor Dragoneer Investment Group, which will value it at around $10 billion, making it one of Europe’s most valuable fintechs. Will become.