German regulator BaFin has fined N26 €9.2 million for deficiencies in its anti-money laundering protocols, though it may soon lift the limit on the number of new customers the digital bank can accept.
BaFin’s fine follows an assessment that N26 had systematically delayed the submission of suspected money laundering reports in 2022. This penalty adds to an ongoing scrutiny regarding N26’s money laundering controls.
In 2021, BaFin fined the bank €4.25 million and imposed a cap on the monthly onboarding of new customers, limiting it to 50,000. This restriction still stands, bolstered by an audit presence at the bank to oversee its progress.
Last July, BaFin extended this cap, citing persistent “deficiencies” in N26’s systems and demanding enhancements in IT monitoring, quality assurance, and effective outsourcing controls. However, Bloomberg reports that the regulator is now considering lifting the cap as early as this year.
N26 stated that since 2022, it has implemented numerous measures to enhance its reporting processes, investing over €80 million in personnel and technical infrastructure to uphold the highest standards in combating financial crime and money laundering.