The Federal Financial Supervisory Authority (BaFin) has announced a proceeding against N26 Bank AG due to deficiencies in reporting suspicious activities in 2022. As a result, BaFin will impose a fine of 9.2 million EUR on the bank.

Investing in Compliance Measures

In response to these shortcomings, N26 has taken steps since 2022 to enhance its reporting processes. The bank has invested over 80 million EUR in both personnel and technical infrastructure to uphold high industry standards in combating financial crime and money laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term.

According to N26, it anticipated a potential fine and made provisions for it in its 2022 annual financial statements. The actual fine imposed is less than the amount set aside. The bank has expressed its commitment to continuing its cooperative and trusted relationship with regulators on these matters.

🚨 𝘽𝙍𝙀𝘼𝙆𝙄𝙉𝙂: Germany's BaFin fines the neobank N26 a further 9.2 million euros.

BaFin found that the bank had systematically submitted suspicious money laundering reports late in 2022.

N26 was informed about the fine on April 24th.

This is not the first time N26 is… pic.twitter.com/s8l3of1JbT

— Marcel van Oost (@oost_marcel) May 21, 2024

Earlier, BaFin investigated unauthorized activities on fx-flat.com, posing risks to consumers and financial institutions. The website falsely offers banking and financial services without regulatory approval. Despite FXFlat Bank GmbH's clarification of no affiliation, the manager behind fx-flat.com remained undisclosed.

Operating in Italian, the site provided false information, including former company details, misleading consumers. Falsely claiming BaFin authorization, it enticed consumers into opening trading accounts.

N26 Launches Joint Accounts across Europe

Meanwhile, N26 has introduced joint accounts across 21 European countries, including Austria, Belgium, Spain, and Sweden, as Finance Magnates reported. Users can easily manage personal and shared finances through the app without paperwork.

The joint accounts offer features like expense tracking, participant filtering, and monitoring joint budgets, each with its dedicated IBAN for managing shared expenses like rent or household costs.

Participants have full legal ownership and access to smart insights, ensuring transparency. This offering complements N26's Shared Spaces feature, providing a solution for creating sub-accounts with close contacts.