Bunq fined €2.6M for insufficient anti-money laundering controls

De Nederlandsche Bank (DNB) has imposed a €2.6 million fine on Dutch online bank Bunq for ‘serious deficiencies’ in its money laundering controls.

To combat all forms of serious crimes, including terrorist financing, money laundering must be dealt with. Concealing the origin of criminal proceeds enables perpetrators to steer clear of the investigative authorities and enjoy their ill-gotten gains undisturbed.

Because banks play an indispensable role in the world of finance, they act as gatekeepers and are obliged to carry out anti-money laundering controls. This means that banks must know who their customers are, where the customers’ money comes from, and what customers intend to do with their payment accounts.

This doesn’t end when customers are accepted: banks must continue monitoring them on an ongoing basis. Any unusual or suspicious financial transactions must be reported to the Financial Intelligence Unit (FIU-NL) so that investigative authorities can look into these transactions.

According to the supervisor, Bunq did not have adequate controls in place to prevent criminals from misusing bank accounts for money laundering purposes between January 2021 and May 2022. Deficiencies in money transaction monitoring may cause illicit money flows to continue unchecked.

“Bunq failed to exercise adequate ongoing monitoring in the four files on which DNB’s administrative fine is based. As a result, Bunq did not have sufficient insight into these customers and their transactions. Given the severity and extent of the deficiencies in these files, DNB considers the fine imposed both necessary and appropriate,” the DNB says in a public statement.

Because of Bunq’s non-compliance, the Dutch online bank was fined €2.6 million. Bunq had objected to DNB’s decision to impose a fine. The objection process is still pending.

Over the past few years, more banks in the Netherlands have been fined for shortcomings in preventing money laundering. In 2018, ING paid a settlement of €775 million to the Public Prosecution Service because the bank had not done enough research into customers and the money in their accounts.

In 2021, ABN Amro paid a settlement of 480 million euros after several DNB fines. Rabobank was also fined for inadequate anti-money laundering controls. However, the bank refused to settle with the Public Prosecution Service and may therefore have to appear in court.