Bunq Challenges €2.6 Million Fine Over Money Laundering Controls

Dutch online bank Bunq has been fined €2.6 million ($3.04 million) by the country's central bank for failing to meet anti-money laundering obligations. The Dutch central bank (DNB) announced on Monday that the penalty was issued in May after it found "serious shortcomings" in four specific cases between January 2021 and May 2022.

According to the regulator, Bunq did not properly investigate or report suspicious activities that could have indicated possible financial crimes. DNB added that its concerns were not new, pointing to earlier investigations that had revealed deficiencies in the bank's controls. Despite an earlier fine and multiple warnings, the regulator said the online bank had not adequately improved its practices.

In a written response, Bunq rejected the regulator's assessment and confirmed that it has lodged a formal objection. "At Bunq, we take our role as gatekeeper very seriously," a spokesperson for the bank said. The spokesperson also highlighted ongoing efforts to enhance monitoring. "We use the most advanced technology and continuously strengthen our systems - including in response to these cases from 2021-2022. We remain confident in our position."

The case adds to a broader push by Dutch authorities to tighten oversight of financial crime risks in the banking sector. In recent years, the country's largest lenders have faced significant penalties. ING and ABN Amro were both hit with hefty fines after prosecutors and regulators found shortcomings in their monitoring of suspicious transactions.

The issue continues to draw scrutiny. In April, Rabobank announced it would face a court case over alleged failures to detect money laundering, after negotiations with prosecutors to settle the matter broke down. Against this backdrop, Bunq's dispute with the central bank underscores the ongoing pressure on Dutch financial institutions to demonstrate effective systems for detecting and reporting illicit activity.