German Regulator Fines Fintech Solaris SE €6.5M for Late Money Laundering Reports

Germany's financial watchdog, Bafin, has imposed a record fine of €6.5 million on fintech company Solaris SE for the delayed filing of Suspicious Transaction Reports (STRs). The penalty was set due to Solaris SE's "systematic submission" of late reports, according to Bafin.

The fine, deemed legally binding, signifies a landmark quantum in penalties for late STR filings. Solaris SE, known for its aim to eliminate barriers for businesses in offering digital financial solutions, operates a proprietary "Banking-as-a-Service platform" enabling businesses to integrate financial solutions into new contexts easily.

The German Federal Financial Supervisory Authority (BaFin) released a statement this week confirming the final decision against Solaris SE, based on the Act on the Detection of Profits from Serious Crime (Money Laundering Act – GwG). The fine, amounting to €6,500,000, was issued on February 6, 2024.

Under German law, credit institutions are mandated to report suspicions of money laundering or terrorist financing to the Financial Intelligence Unit (FIU) promptly. These suspicions must be reported immediately to facilitate swift action by the FIU, including forwarding information to law enforcement agencies if necessary.

By fLEXI tEAM