Popular neobank Bunq disputes the decision of the Dutch regulator to fine the digital challenger for failures in its money laundering controls.
Netherlands-based online bank Bunq was reportedly fined 2.6 million euros (approximately $3 million) by the Dutch central bank DNB for repeated negligence in anti-money laundering (AML) policies.
According to a DNB statement seen by Reuters, the regulator fined Bunq in May over four cases that occurred from January 2021 to May 2022, citing “serious shortcomings” in its efforts to investigate and flag possible financial misconduct.
This was not the first case of the DNB attack against Bunq. The regulator reportedly conducted previous investigations with repeated failures detected. However, the bank had allegedly failed to improve its AML policies despite an earlier fine and other warnings.
Despite the regulator’s conclusions, Bunq has formally objected to its decision. Its representatives claim that as a fintech company, the online bank takes the role of a gatekeeper very seriously, using the most advanced technology for fraud protection and risk minimization in its AML processes.
In 2022, the bank reported it had achieved a legal win against the Dutch Central Bank regarding the application of modern technology in anti-money laundering efforts. Per this report, Bunq challenged DNB in court after the regulator rejected its AI-driven, risk-based approach to combating money laundering in favor of traditional rule-based methods. In a landmark ruling, the court sided with Bunq, recognizing the legitimacy of its innovative technology.
Nevertheless, DNB apparently continued to question Bunq’s AML technologies and processes, ultimately resulting in a fine decision.
In recent years, Dutch banks have notably strengthened their surveillance efforts, as regulators’ increased scrutiny brought substantial penalties to the country’s leading banks, ING and ABN Amro, for weaknesses in their anti-money laundering measures.
