Finance
Germany financial watchdog slaps record fine on JPMorgan of $52 million
Published by Global Banking & Finance Review®
Posted on November 6, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 6, 2025
2 min readLast updated: January 21, 2026
Germany's BaFin fined JPMorgan €45M for money-laundering prevention failures, marking its largest penalty. JPMorgan plans to expand its digital banking in Germany.
By Tom Sims
FRANKFURT (Reuters) -Germany's financial watchdog BaFin has imposed its largest-ever fine of 45 million euros ($52.5 million) on Frankfurt-based JPMorgan SE for deficiencies in money-laundering prevention.
BaFin said on Thursday 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.
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 U.S. 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.
($1 = 0.8575 euros)
(Reporting by Tom Sims, editing by Madeline Chambers, Thomas Seythal and Miranda Murray)
Money laundering is the process of making illegally obtained money appear legitimate. It typically involves three steps: placement, layering, and integration.
A suspicious activity report (SAR) is a document that financial institutions must file with authorities when they detect suspicious or potentially criminal activity.
BaFin, or the Federal Financial Supervisory Authority, is Germany's financial regulatory authority responsible for overseeing banks, financial services, and insurance companies.
Compliance regulations are rules and guidelines that organizations must follow to ensure they operate within legal and ethical standards, particularly in financial practices.
Regulatory fines can lead to financial losses, reputational damage, and increased scrutiny from regulators, impacting a company's operations and future compliance efforts.
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