The German Federal Financial Supervisory Authority (BaFin) has identified serious shortcomings at Varengold Bank AG in the prevention of money laundering and terrorist financing.
BaFin has therefore ordered the institution to take appropriate and suitable measures to remedy these shortcomings. In addition, BaFin has imposed on Varengold Bank AG an administrative fine of EUR 3.3 million and a coercive fine of EUR 500,000.
In the special inspection conducted in 2022 and in the annual audits for 2022 and 2023, Varengold Bank AG was found to have serious shortcomings in the prevention of money laundering, in particular in the execution of transactions relating to Iran.
BaFin found shortcomings for example in connection with the following statutory obligations: risk analysis, creation and operation of an IT monitoring system, performance of customer due diligence and compliance with obligations in the implementation of internal safeguards. The serious shortcomings have a considerable impact on the institution’s prevention of money laundering and terrorist financing.
On 25 July 2025, BaFin therefore ordered the institution to remedy the shortcomings. The administrative order is final and binding.
Varengold Bank AG has submitted a written remediation plan to BaFin and must report to BaFin on an ongoing basis regarding the status of the remediation of the shortcomings.
Furthermore, BaFin imposed an administrative fine amounting to EUR 3.3 million on Varengold Bank AG. From June 2023 to March 2025, the institution had systematically failed to submit suspicious transaction reports within the prescribed period. The administrative fine order is final and binding.
Moreover, in an administrative order issued on 26 February 2025, BaFin imposed a coercive fine in the amount of EUR 500,000 on Varengold Bank AG due to two violations of the administrative order of 27 June 2023. In this administrative order, Varengold Bank AG had been prohibited from executing transactions with payment agents and other third parties relating to Iran, due to high money laundering risks and serious shortcomings in the prevention of money laundering.
The administrative order imposing the coercive fine is final and binding.
