German Digital Bank N26 Shutting Down U.S. Operations 

German digital bank N26 will close its U.S. operations as of Jan. 11, 2022, less than two-and-a-half years after it debuted in America and attracted 500,000 customers, according to a company statement reported by CNBC Thursday (Nov. 18). 

Berlin-based N26 is planning to focus more on its European business, leading to the shuttering of its U.S. arm, according to the CNBC report. The company was valued at $9 billion after $900 million fundraising round last month. 

N26 will also spend more on investment products and other new features in the coming year as well as expand into eastern Europe. It will move its U.S. staffers to other locations “where possible.” 

“U.S. customers will be able to use their accounts as usual until Jan. 11, 2022, and will receive further instructions on how to withdraw their funds to ensure a smooth transition,” the bank said in its statement, according to the CNBC report. 

N26 withdrew from the U.K. early last year after the country pulled out of the European Union. 

Since N26 came to the U.S. in July 2019, the company has dealt with a plethora of obstacles, including laying off 10% of its New York workforce because of the continuing spread of the COVID-19 pandemic. Meanwhile, German regulators fined N26 $5 million in June for failing to submit suspicious activity reports on money laundering on time. 

Last month, N26 finalized a deal with watchdog firm BaFin to limit how many customers it onboards each month. N26 has raised $1.7 billion in funding since its inception, including contributions from U.S. investment manager Coatue, Singapore sovereign wealth fund GIC and tech billionaire Peter Thiel. 

Related: N26 Close to Getting $800M In Funding Round 

N26 was founded in 2013 and backed by Thiel and Hong Kong businessman Li Ka-shing. The company allows current accounts and ATM withdrawals through a debit card to its 5 million global customers. 

The company paid $5 million in July over anti-money laundering (AML) reporting irregularities after a tightening of controls brought on by the Wirecard fraud scandal in June 2020. The fine related to the late filing of about 50 suspicious activity reports in 2019 and 2020. Since then, N26 has strengthened its anti-financial crime controls.