BaFin says U.S. banking giant delayed suspicious activity reports; penalty marks regulator’s largest ever…
Germany’s financial watchdog, BaFin, has imposed a record €45 million (about $51.8 million) fine on JPMorgan Chase, citing major lapses in the U.S. bank’s anti–money laundering controls.
In a statement released on Thursday, BaFin said JPMorgan had “systematically failed to submit suspicious activity reports in a timely manner” between October 2021 and September 2022, breaching its supervisory obligations under German financial law.
The fine calculated based on the bank’s turnover represents the largest penalty ever issued by BaFin. Financial institutions are required to promptly file suspicious activity reports (SARs) whenever transactions or account behavior may indicate illegal or illicit financial activity.
Reacting to the sanction, a JPMorgan Chase spokesperson described the issue as “historical,” adding that the timing of the delayed filings had not hindered any ongoing investigations by German authorities.
“We are deeply committed to detecting, preventing, and reporting money laundering and financial crimes, and are pleased that this matter is now resolved and remediated,” the spokesperson said.
BaFin’s Tough Stance on Compliance
The €45 million penalty surpasses BaFin’s previous record of €39 million issued in 2015 against Deutsche Bank for similar money-laundering reporting failures.
Earlier this year, in March 2025, Deutsche Bank was also fined €23 million for breaches linked to the sale of derivative products in Spain and operational weaknesses at its subsidiary, Postbank.
BaFin’s latest action underscores the regulator’s growing resolve to tighten compliance oversight and crack down on lapses in money-laundering prevention within Germany’s financial system.
JPMorgan Eyes German Market Expansion
Despite the penalty, JPMorgan Chase, the largest U.S. bank by assets, remains deeply entrenched in Germany’s financial sector.
The Wall Street giant plans to launch its digital retail bank, Chase, in the German market by the second quarter of 2026, following its successful rollout in the United Kingdom in 2021.
However, the expansion will see JPMorgan face stiff competition from established European fintech challengers such as N26, Revolut, and Trade Republic.
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