Germany’s Federal Financial Supervisory Authority (BaFin) has levied an administrative fine of €45m (approximately $52m) against JP Morgan SE, domiciled in Germany.
The penalty is stated to be the result of “shortcomings” in the bank’s systems for preventing money laundering.
In a statement, BaFin said that JP Morgan SE failed in its supervisory responsibilities concerning the internal processes required for submitting suspicious transaction reports.
Between 4 October 2021 and 30 September 2022, the bank “systematically failed to submit” such reports without undue delay, as mandated by regulations.
The enforcement action became legally binding on 30 October 2025.
JPMorgan was quoted by Reuters as stating, “The fine relates to historical findings and the timing of our suspicious activity report (SAR) filings did not impede any investigations by the 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.”
According to the Bloomberg report, a spokesperson from the German finance watchdog said that the €45m fine is the “highest ever” imposed by BaFin on a financial institution.
Financial institutions in Germany are obliged to alert regulators to transactions that appear suspicious, such as those involving unusual sums or atypical business partners. These notifications are considered essential tools in combating illicit financial activity.
The regulator emphasised in a statement that institutions must promptly notify the German Financial Intelligence Unit (FIU) if there is suspicion that a business transaction may be linked to money laundering or terrorist financing.
Timely reporting enables the FIU to take further measures or pass information to law enforcement agencies if needed.
For systematic breach cases, regulatory fines can be calculated based on an institution’s total revenue, leading to substantial penalties such as in this case.
