The Federal Financial Supervisory Authority (BaFin) has imposed an administrative fine of €45 million ($51.9mn) on J.P. Morgan SE, domiciled in Frankfurt am Main. The administrative fine was imposed due to shortcomings in the company’s money laundering prevention.
The credit institution culpably breached its supervisory obligations regarding internal processes for the submission of suspicious transaction reports. As a result of these procedural shortcomings, in the period from 4 October 2021 to 30 September 2022, J.P. Morgan SE systemically failed to submit suspicious transaction reports without undue delay.
Credit institutions are obliged entities within the meaning of the German Money Laundering Act (Geldwäschegesetz). They must take appropriate supervisory measures to prevent breaches of the obligations under the Money Laundering Act. One such obligation is the submission of suspicious transaction reports.