JPMorgan hit with record 45-million-euro fine from German watchdog over money-laundering lapses

[FRANKFURT] Germany’s financial watchdog BaFin has imposed its largest-ever fine of 45 million euros (S$67.6 million) on Frankfurt-based JPMorgan SE for deficiencies in money-laundering prevention.

BaFin said on Thursday (Nov 6) that JPMorgan had “systematically” filed so-called suspicious activity reports late in the period from October 2021 though September 2022.

JPMorgan has grown to one of the largest banks in Germany, drawn to its large wealthy customer base, stable regulatory environment and fintech scene.

The size of the fine reflects JPMorgan’s weight as a banking giant.

“The fine relates to historical findings and the timing of our SAR filings did not impede any investigations by the authorities,” JPMorgan said in a statement.

“We are deeply committed to detecting, preventing, and reporting money laundering and financial crimes,” the bank added.

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The suspicious activity reports, commonly known as SARs, are documents that banks are required to file with authorities when they identify activity by customers that could be associated with a crime.

The US bank recently announced it would launch its Chase digital retail bank in Germany in the second quarter of next year, a bold move into the crowded banking market of Europe’s largest economy. REUTERS