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German regulator threatens Solaris with fines for AML controls

Monday 15 July 2024 13:52 CET | News

BaFin, the German bank regulator, has threatened to fine embedded finance platform Solaris if it doesn’t meet deadlines to improve its AML controls and other shortfalls.

 

BaFin has threatened to fine embedded finance platform Solaris if it doesn’t meet deadlines to improve its AML controls and other shortfalls.

The German bank regulator BaFin announced that it has threatened Berlin-based Solaris with fines if it fails to meet deadlines for enhancing anti-money laundering (AML) controls and address other deficiencies. BaFin also stated that it is extending the mandate of a special monitor, who has been in place since 2022, to oversee the bank's progress.

Solaris said that it was continuing ‘to make significant progress in implementing additional measures that address the identified deficiencies’. It called the extension of the monitor's mandate a ‘formality’ and said wouldn't impact its operations.

Previous actions from BaFin

In May 2024, BaFin has fined digital bank N26 nearly EUR 9.2 million for delayed reporting of suspected money laundering activities in 2022. N26 has since invested over EUR 80 million to improve its reporting processes and comply with financial crime standards.

BaFin also fined Commerzbank EUR 1.45 million for similar anti-money laundering (AML) issues. Both banks have taken steps to address these regulatory breaches and enhance their compliance measures.

In February 2024, Switzerland-based Crypto Finance has secured four licenses from BaFin for its subsidiary, Crypto Finance (Deutschland). These licenses authorise regulated digital asset trading, settlement, and custody services in Germany, reinforcing Crypto Finance's position in the European digital asset market. The company emphasises its commitment to transparency, security, and providing institutional-grade services within regulatory frameworks.


Source: Link


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Keywords: AML, regulation, compliance, embedded finance
Categories: Fraud & Financial Crime
Companies: BaFin, Solaris
Countries: Germany
This article is part of category

Fraud & Financial Crime

BaFin

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Solaris

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