Syed Rahman explains the bank’s penalty for money laundering shortcomings.
Germany's financial watchdog BaFin has imposed a 45 million euro fine on JP Morgan for money laundering failings.
Citing shortcomings in money-laundering prevention, BaFin said that the bank, which has become one of the largest in Germany, had systematically failed to submit suspicious activity reports in a timely manner from October 2021 to September 2022.
The size of the fine, which is reportedly the biggest ever imposed by BaFin, was based on JP Morgan’s turnover. BaFin emphasised that JP Morgan had breached its supervisory obligations. Under German law, financial institutions must file reports with regulators without delay if they suspect a transaction may be linked to money laundering or terrorist financing.
After the imposition of the fine, JP Morgan said it related to “historical findings’’. The bank, which has expanded its presence in Germany since Brexit, claimed the timing of its suspicious activity reports had not impeded any investigations by the authorities.
