Germany’s financial watchdog said on Wednesday it imposed a fine on online bank N26 over failures in the popular start-up’s anti-money laundering system.

The €4.25 million penalty was issued in June but only confirmed by the regulator BaFin in a statement on Wednesday after it was disclosed by N26 late on Tuesday.

N26 said the fine was in connection with around 50 “suspicious transactions” linked to money laundering between 2019 and 2020. The company said it reported the suspicious operations to BaFin too late for them to be properly examined. The bank said it paid off the fine in July.

The fine was in connection with around 50 “suspicious transactions” linked to money laundering between 2019 and 2020. The company said it reported the suspicious operations to BaFin too late for them to be properly examined

BaFin had ordered N26 in May to step up “internal controls and safeguards” to prevent money laundering and terrorist financing. It also appointed a special representative to monitor progress.

The bank said on Tuesday that measures aimed at improving the disclosure of suspicious activities were put in place earlier this year. “N26 is taking its responsibilities in the fight against the growing threat of global financial crime,” the start-up said.

Founded in 2013 and known for its transparent debit cards, digital bank N26 is one of Germany’s most high-profile financial technology or “fintech” firms and now has seven million customers in 25 countries.

Its rapid growth has rested in part on fast-track identity procedures for new customers. But it has been in the crosshairs of BaFin since 2018 after a German news media investigation found that it was possible to open account with forged IDs.