Topic Measures Administrative fine proceedings initiated by BaFin
Content
Article from the Annual Report 2016 of the BaFin
In 2016, BaFin initiated a total of 424 administrative fine proceedings1 (see info box "New administrative fine proceedings initiated by BaFin").
New administrative fine proceedings initiated by BaFin
BaFin initiated 424 administrative fine proceedings in 2016:
The proceedings were launched against natural persons, payment agents, credit institutions, insurance undertakings, payment institutions and institutions engaged in finance leasing and/or factoring4, and – where applicable – also against their responsible persons. These concerned violations of the provisions of the German Money Laundering Act (Geldwäschegesetz), the German Banking Act (Kreditwesengesetz), the German Insurance Supervision Act (Versicherungsaufsichtsgesetz), the German Capital Investment Act (Vermögensanlagegesetz), the German Securities Trading Act (Wertpapierhandelsgesetz) the German Securities Prospectus Act (Wertpapierprospektgesetz) and the Germany Payment Services Supervision Act (Zahlungsdiensteaufsichtsgesetz) that are punishable by a fine.
Amount of the administrative fines
Administrative fines totalling €3,275,095 were imposed across all of BaFin's directorates in 2016 (see info box "Administrative fines imposed by BaFin").
Administrative fines imposed by BaFin
In 2016, BaFin imposed administrative fines totalling €3,275,095:
- Administrative fines totalling €705,095 were attributable to the Banking Supervision (including money laundering prevention) and Insurance Supervision Directorates.
- The Securities Supervision Directorate imposed a total of €2,570,000 in administrative fines.
Administrative fine proceedings – Securities Supervision
In 2016, BaFin's Securities Supervision Directorate initiated a total of 2885 new administrative fine proceedings for violations of capital markets law6, with 1,106 proceedings still pending from the previous year. BaFin concluded 114 proceedings with administrative fines totalling €2,570,0007 (see info box "Administrative fines imposed by BaFin").
One focus for Securities Supervision is violations of the obligation to publish ad hoc disclosures. BaFin launched 21 proceedings in this area, of which it concluded a total of 20. BaFin discontinued 7 proceedings and imposed an administrative fine in 13 proceedings. The highest administrative fine in this area was €195,0008.
Administrative fine proceedings – Banking and Insurance Supervision Proceedings against agents
Proceedings against agents
BaFin launched 61 proceedings against agents within the meaning of section 1 (7) of the Payment Services Supervision Act in the year under review.9 BaFin issued 48 administrative orders imposing a fine in these 61 proceedings and other administrative fine proceedings pending from previous years against agents. In 2016, 47 administrative orders imposing a fine on agents became final, of which one in a preliminary hearing following a permissible appeal and one further order as the result of a decision by the Local Court (Amtsgericht). At the time of going to press, 2 administrative fine proceedings against agents were pending a preliminary hearing following a permissible appeal. 19 others were concluded using the warning procedure10 since, once the investigations were complete, the administrative offences in each case were able to be judged as still insignificant. BaFin has discontinued a further two proceedings.11
In 2016, BaFin imposed fines totalling €165,895 against agents within the meaning of section 1 (7) of the Payment Services Supervision Act.
Other proceedings
In the year under review, BaFin12 initiated 75 proceedings in accordance with the Act on Breaches of Administrative Regulations as a result of breaches of the provisions of the Money Laundering Act, the Payment Services Supervision Act, the Banking Act and the Insurance Supervision Act that are punishable by a fine against credit institutions, insurance undertakings, payment institutions and institutions that engage in finance leasing and/or factoring13. Of these, 70 were attributable to the Banking Supervision Directorate (including 20 to the Department for the Prevention of Money Laundering) and 5 to the Insurance Supervision Directorate.
In the year under review, BaFin issued 24 administrative orders imposing a fine in these proceedings and others pending from previous years: 22 in the Banking Supervision Directorate (including 9 in the Department for the Prevention of Money Laundering) and 2 in the Insurance Supervision Directorate.
In 2016, 20 administrative orders imposing a fine became final: 18 from the Banking Supervision Directorate (including 7 proceedings from the Department for the Prevention of Money Laundering) and 2 from the Insurance Supervision Directorate. In addition, 1 administrative order imposing a fine became final in a preliminary hearing following a permissible appeal and 1 as the result of a court decision, both of these from the Banking Supervision Directorate (of which 1 from the Department for the Prevention of Money Laundering).
6 proceedings were pending a preliminary hearing at the time of going to press: 4 in the Banking Supervision Directorate (of which 2 from the Department for the Prevention of Money Laundering) and 2 from the Insurance Supervision Directorate. 19 proceedings were discontinued: 17 from the Banking Supervision Directorate (including 5 from the Department for the Prevention of Money Laundering) and 2 from the Insurance Supervision Directorate. 16 of these proceedings were discontinued in accordance with the principle of discretionary prosecution (all from the Banking Supervision Directorate, including 4 from the Department for the Prevention of Money Laundering).
Amount of the administrative fines
In 2016, BaFin imposed a total of €539,200 in administrative fines against credit institutions, insurance undertakings, payment institutions and institutions that engage in finance leasing and/or factoring, and – where applicable – also against their responsible persons, for violations of the Money Laundering Act, the Payment Services Supervision Act, the Banking Act and the Insurance Supervision Act.
Footnotes:
- 1 Proceedings under the Act on Breaches of Administrative Regulations (Ordnungswidrigkeitengesetz).
- 2 These proceedings were initiated by the Internal Administration and Legal Affairs Directorate.
- 3 These include the figures stated in Measures and administrative fine proceedings and Administrative fine proceedings.
- 4 Section 1 (1a) sentence 2 nos. 9 and 10 of the Banking Act.
- 5 Including the figures stated in Measures and administrative fine proceedings and Administrative fine proceedings.
- 6 This includes violations of the Securities Trading Act, the Securities Acquisition and Takeover Act, the Securities Prospectus Act, the Capital Investment Act and the Banking Act. In 2016, BaFin did not initiate any administrative fine proceedings for violations of the Securities Acquisition and Takeover Act.
- 7 This total includes the administrative fines stated in Measures and administrative fine proceedings and Administrative fine proceedings.
- 8 See Selected cases.
- 9 These proceedings were initiated by the Internal Administration and Legal Affairs Directorate.
- 10 Section 56 of the Act on Breaches of Administrative Regulations.
- 11 See section 47 (1) of the Act on Breaches of Administrative Regulations.
- 12 These proceedings were initiated by the Internal Administration and Legal Affairs Directorate.
- 13 Or against their responsible persons.
