The German Federal Financial Supervisory Authority (BaFin) has imposed three fines totaling €140,000 on DLT Securities GmbH.

The fines were imposed for violations of the Money Laundering Act. The securities firm failed to implement adequate internal safeguards tailored to its business and clients.

Furthermore, it did not monitor the effectiveness of these safeguards and failed to update them regularly and as needed.

According to Section 6, Paragraph 1 of the Money Laundering Act (GwG), securities firms must establish internal safeguards to manage and mitigate the risks of money laundering and terrorist financing through principles, procedures, and controls. These measures are intended to prevent the misuse of their services to launder the proceeds of crime into the legitimate financial system.

The institutions are also required to monitor the effectiveness of their internal safeguards and update them regularly and as needed.

DLT Securities GmbH failed to adequately design and update its internal principles, procedures, and controls regarding its due diligence obligations and risk management, at least between May 1, 2022, and February 18, 2025, despite the need for updates.

Furthermore, the securities institution did not subject its digitized customer risk assessment process to any review.