German financial regulator Bafin imposes a fine of 9.2 million euros on the online bank N26.
Online bank N26 faces a hefty fine of 9.2 million euros for not reporting suspected money laundering in a timely manner. This penalty was decided upon by the financial supervisory authority, Bafin. N26 allegedly failed to file these reports on time in the year 2022, as announced by the authority.
It's mandatory for banks to alert the Financial Intelligence Unit (FIU) - the organization that investigates and reports cases of potential money laundering - promptly about suspicious transactions.
Regulators have been keeping a close eye on N26 for some time now. Bafin has even asked the digital bank in Berlin to adopt preventative measures to better monitor and tackle money laundering, and they've even sent a special representative to track progress.
According to N26, they've already spent more than 80 million euros on personnel and technical resources to thwart financial crimes since 2022. They had set aside funds for the potential fine, which surpasses the actual amount that was imposed. The bank continues to work with regulatory authorities.
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The fine of 9.2 million euros imposed on N26 by Bafin surpasses the amount set aside by the bank for potential money laundering monitoring penalties. This fine is a result of N26's failure to report suspected money laundering activities to the FIU in a timely manner, as required by regulation. N26's current anti-money laundering efforts include investing over 80 million euros in personnel and resources since 2022.
Despite the fine, online banking platforms like N26 continue to rely on digital wallets to manage their customers' funds, a crucial part of the banking industry in the digital age.
Bafin's strict monitoring and penalties towards online banks like N26 for money laundering issues underscore the importance of robust online bank security and compliance measures in the European financial sector.
Source: www.ntv.de
