On 23 December 2021, the Netherlands Authority for the Financial Markets (AFM) appears to have imposed an administrative fine of 2 million euros on the DeGiro of the German company flatexDEGIRO Bank AG (FlatexDeGiro) because the online broker reported unusual transactions too late and incorrectly to Financial Intelligence. Unit – Netherlands (FIU).
DeGiro did this late in 27 cases and an incorrect transaction date was reported in ten cases. Unusual transactions may indicate money laundering by investors.
Investment firms, such as DeGiro, are required to report unusual transactions to the FIU. DeGiro made a total of 36 reports from mid-2019 to mid-2020. The majority of those reports came in too late, sometimes a few months after the legal deadline.
The transaction date was also incorrect for almost one in three. In doing so, DeGiro violated the Money Laundering and Terrorist Financing Prevention Act (Wwft). Because DeGiro was absorbed into FlatexDeGiro through a legal merger in May 2021, the fine is imposed on that company.
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