Violation of money laundering regulations: Next fine in the millions for N26
Neobank N26 has also violated anti-money laundering regulations in 2022, and this is not the first time. This time, 9.2 million euros are due.
(Image: N26)
Neobank N26 has been fined 9.2 million euros for "systematically" submitting suspicious activity reports on possible money laundering too late in 2002. This was announced by the financial supervisory authority Bafin, which stated that the corresponding fine was legally binding. This is the second such fine for the bank, which was already fined 4.25 million euros in 2021 for inadequate implementation of anti-money laundering requirements. At the time, the bank promised to implement additional measures. However, this was probably not enough. The bank itself now points out that, in view of the expected fine, provisions have been made, "the fine imposed is below the amount of the provision".
N26 vows to do better
If banks and credit institutions suspect that a financial transaction or "other business transaction" has a connection to money laundering or terrorist financing, they must report this to the Financial Intelligence Unit (FIU), Bafin reminds. These suspicious activity reports must be made immediately so that the FIU can take further steps if necessary, such as calling in law enforcement authorities. The smartphone bank systematically failed to do this in 2022 and is therefore now being asked to pay again. N26 is active in 24 countries in Europe and has around 1,500 employees, including around 1,000 in Berlin.
In response to the fine, N26 has now stated that it has "implemented numerous measures to improve reporting processes" and invested over 80 million euros in its personnel and technical infrastructure since 2022. The Berlin digital bank has now had to pay more than 13 million euros for the inadequate implementation of the money laundering guidelines. The first fine was imposed for negligence in the years 2019 to 2020. When this first fine was imposed, a special representative was also appointed to monitor the company's implementation of the measures. N26 now assures that it intends to comply with "the highest industry standards in the more effective fight against financial crime and money laundering".
(mho)