BaFin levied the penalties after determining that N26 consistently filed notifications of possible money laundering after the deadline in 2022.

The fine is the most recent chapter in the lengthy story about N26's efforts to prevent money laundering.

The bank was fined €4.25 million by BaFin in 2021, and the institution was then subject to a temporary cap on the number of new customers it could accept each month. The monthly cap of 50,000 new customers is still in effect, and it has been supplemented with an audit presence at the bank to track advancements.

In July of last year, BaFin increased the cap, finding that N26's systems still had "deficiencies" and requiring increased IT monitoring, heightened quality assurance, and the implementation of robust outsourced controls.

Bloomberg claims that the agency is now thinking about raising the cap, possibly even this year.

"Numerous measures to further improve reporting processes, while investing over €80 million in personnel and technical infrastructure to maintain the highest industry standards in combating financial crime and money laundering," according to a statement released by N26, has been in place since 2022.