German officials are dropping their attempt to ban the Church of Scientology because they have found insufficient evidence of illegal activity.

Security officials say, however, that domestic intelligence will continue to monitor the group.

Berlin’s top security official, Erhart Koerting, says Scientology “is a lousy organization, but it is not an organization that we have to take a hammer to.”

The Church of Scientology welcomes the decision as the “only one possible.”

German officials have said the Los Angeles-based group is less a church than a business and uses coercion to take advantage of vulnerable people.

A report on extremism has charged that Scientology seeks to violate rights like “the right to develop one’s personality and ... be treated equally.”