Public prosecutors in Germany are currently investigating four managers at the troubled online bank N26.
According to the German newspaper Handelsblatt, the investigation is linked to suspicions of fraudulent customer accounts.
A number of customers are believed to have complained that reported accounts were not blocked in a "timely fashion," with criminals allegedly opening multiple accounts to launder dirty money.
The public prosecutor's office confirmed the investigation "is directed against a total of four responsible persons of N26" in a statement to Handelsblatt.
However, a N26 spokesperson told Reuters that the bank had no knowledge of the possible investigation.
In recent years, the digital bank has had a turbulent time. The country's regulator, BaFin, told N26 in November that it needed to drastically cut its number of new customers, with a monthly cap of 50,000.
The bank's co-founder admitted just last month that the company was still struggling with aspects of its compliance obligations.
Max Tayenthal, the bank's co-CEO, stated that the bank was close to resolving the AML issues that enraged BaFin. He did admit, however, that the cap was a "massive restriction" on N26, but that the bank had "massively" increased its AFC capabilities since then.
By fLEXI tEAM