German digital bank N26 has been fined €4.25 million by BaFin over lax money laundering controls.
N26 has been facing heightened scrutiny from German regulatory authorities over the past two years. In May, the watchdog appointed a special commissioner to monitor the fintech giant's compliance with an order to implement appropriate internal controls and safeguards and comply with general due diligence requirements.
N26 has also been told to ensure that it has the adequate personnel, technical and organisational resources to comply with its obligations under anti-money laundering law.
The $4.25 penalty imposed by BaFin related to the late filing of amost 50 suspicious activity reports by the bank in 2019 and 2020.
In a statement, N26 says: “All measures to improve reports of suspicious activities have been implemented earlier this year.”
Currently valued at $3.5 billion, N26 is understood to be on the cusp of a mega funding round which would lift its valuation closer to $10 billion, making it one of the most valued fintechs in Europe.