The German challenger N26 was ordered to pay a fine of 4.25 million euros by the German financial regulator BaFin.
Bafin announced that the bank had received a corresponding fine on June 25.
N26 stated that the reason for the fine was almost 50 late money laundering reports from 2019 and 2020. The fine has been paid and the measures required by the Bafin have been implemented.
N26 has been in the sights of the German authorities for a few years now. It had been the subject of a first call to order in May 2019. N26 has grown rapidly in recent years and already has seven million customers.
“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 bank stated.
“With the growing importance of e-commerce, we have taken numerous detailed measures and have also established structures and processes that meet the highest standards of financial crime prevention to address this pertinent global threat.”
The bank is now eyeing an initial public offering thanks to which the company’s valuation would reach approximately USD 10 billion.