Dutch Central Bank (DNB) has imposed a €2.6m ($3m) fine on online bank bunq for “serious” deficiencies in its money laundering controls.

The examination by DNB found that bunq had not complied with The Anti-Money Laundering and Anti-Terrorist Financing Act, raising concerns about potential financial crimes being overlooked.

The investigation covered cases from January 2021 to May 2022.

DNB said it assessed bunq’s risk analysis and transaction monitoring processes, highlighting a lack of thorough investigation into suspicious activities.

High-risk customer files showed bunq was deficient in following up on transaction alerts, the regulator said.

It added that bunq’s inability to justify discrepancies in reporting transactions to FIU-NL further exacerbated the issue.

The deficiencies meant unusual transactions might not have been detected or reported in time, allowing illicit money flows to persist.

DNB said: “Given the severity and extent of the deficiencies in these files, DNB considers the fine imposed both necessary and appropriate.”

In a statement, as reported by Reuters, a representative for bunq, said: “At bunq, we take our role as gatekeeper very seriously.

“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.”

DNB said the online bank has lodged an objection to its decision and the objection process is still pending.

Between 2018 and 2023, DNB conducted multiple examinations of bunq’s compliance with the Anti-Money Laundering and Anti-Terrorist Financing Act, identifying several “severe and culpable” non-compliance instances.

Despite previous enforcement actions, including fines, bunq has not achieved sustained compliance, the central bank said.

In bunq’s favour, DNB acknowledged the completion of a remedial programme to address identified deficiencies.

In June, DNB fined ABN AMRO €15m for violating statutory bonus restrictions, highlighting DNB’s active enforcement measures.