BaFin Levies €9.2 Million Fine Against N26 Bank AG Due To 2022 Compliance Failures

The Federal Financial Supervisory Authority (BaFin) has taken legal action against N26 Bank AG for failure to report dubious actions in 2022. Due to this, BaFin will enforce a 9.2 million EUR fine on the financial institution.

Addressing these issues, N26 has taken measures since 2022 to improve its reporting procedures. The institution has devoted over 80 million EUR to upgrading technical and personnel infrastructure.

The reason for doing this is that the bank wants to maintain solid industry standards in fighting against money laundering and financial crime.

N26 Launched Joint Accounts In 21 European Nations

N26 said that it expected the fine would come eventually, so it made preparations in its 2022 yearly financial reports. The actual penalty imposed is lower than the sum reserved. The institution wants to maintain its trusted and cooperative relationship with regulatory authorities on these issues.

Previously, BaFin investigated illegal actions on fx-flat.com, exposing financial institutions and banks to risks. The website deceptively provides financial services without being approved by regulators. FXFlat Bank GmbH clarified that the bank had no relation with the website. The manager operating the illegal site remains hidden.

The website conducted business in Italian and provided fake information, thus deceiving customers. It falsely argued that BaFin authorized it and lured customers into creating trading accounts.

It was reported that N26 rolled out joint accounts throughout 21 European nations, including Sweden, Spain, Belgium, and Austria. Users can manage shared and personal finances easily through the application without paperwork.

Participants In N26’s Shared Accounts Have Access To Smart Insights

The shared accounts provide features like monitoring joint budgets, participant filtering, and expense tracking. Each feature has its unique IBAN for handling shared expenditures such as household or rent costs.

Participants have access to and complete legal control over smart insights, thus providing transparency. This offering enhances N26’s joint spaces feature, offering a solution for generating sub-accounts with linked peers.

BaFin has fined other financial institutions due to violations of regulatory requirements. The watchdog imposed a fine of EUR 1.45 million on Commerzbank over Anti-money laundering concerns.

Since 2014, BaFin has been the German regulatory body overseeing European Banking Supervision. It operates independently, with its headquarters in Frankfurt and Bonn, and is regulated by the Federal Ministry of Finance. The watchdog oversees 800 financial companies, more than 700 insurance companies, and about 2,700 banks.