BaFin fines Commerzbank over AML regulation breach

Tuesday 23 April 2024 12:08 CET | News

The German Federal Financial Supervisory Authority (BaFin) has demanded bank Commerzbank pay a fine of EUR 1.45 million over AML regulation breaches. 

As provided by the regulator in a statement, BaFin’s move follows Commerzbank AG and the former comdirect Bank AG’s breach of supervisory duties, with the bank not updating its customer data on time and not delivering appropriate security measures. This resulted in insufficient due diligence in three cases, therefore violating its Anti-Money Laundering (AML) obligations.

After the announcement, Commerzbank mentioned that it reworked due diligence and updated customer data after the comdirect acquisition. The bank’s officials stated that processes were adjusted accordingly, while the data updates were completed entirely in 2022, thus BaFin’s requirements being fulfilled.

Prior to the current news, more specifically in November 2023, Commerzbank received a cryptocurrency custody licence from BaFin, which made it the inaugural full-service bank in the country to obtain such authorisation. The granted licence allowed the bank to offer a comprehensive suite of digital asset services, with a specific focus on cryptocurrency assets. Commerzbank intended to utilise the licence to establish a secure custody platform dedicated to digital assets, with the financial institution considering the move an advancement in its development strategy.

The German Federal Financial Supervisory Authority (BaFin) has demanded bank Commerzbank pay a fine of EUR 1.45 million over AML regulation breaches.

BaFin’s recent moves

In addition to fining Commerzbank, BaFin recently granted Switzerland-based Crypto Finance four licences that authorised its regulated digital asset trading, settlement, and custody services in Germany. The development intended to further strengthen Crypto Finance’s position within the regulated European digital asset landscape, underlining its commitment to delivering institutional-grade services while adhering to regulatory frameworks.

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Keywords: AML, money laundering, compliance, financial data, financial services
Categories: Fraud & Financial Crime
Companies: BaFin, Commerzbank
Countries: Germany
This article is part of category

Fraud & Financial Crime




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