meta_id 3395237

On June 10, 2026, the Federal Financial Supervisory Authority (BaFin) ordered Instinet Germany GmbH, a Frankfurt-based securities institution, to remedy extensive deficiencies in its anti-money laundering and counter-terrorism financing prevention measures. Multiple inspections revealed that the institution failed to maintain proper business organisation in the areas examined. Deficiencies were identified in risk analysis, money laundering officer functions, customer onboarding procedures, customer risk assessment, and enhanced customer due diligence obligations. These failures violated requirements under the Securities Institution Act (Wertpapierinstitutsgesetz) and the Money Laundering Act (Geldwäschegesetz). BaFin issued the supervisory measure because the institution's own remediation plans proved unsuccessful. Securities institutions must implement appropriate and effective measures to prevent misuse for money laundering and terrorism financing, ensuring proper business organisation that complies with legal requirements and sound business practices. Under Section 33 of the Securities Institution Act, proper business organisation must include effective and appropriate prevention of money laundering and terrorism financing. Institutions must establish internal safeguards to manage and mitigate money laundering and terrorism financing risks through principles, procedures, and controls. They must also monitor the effectiveness of these safeguards and update them as necessary. BaFin has ordered Instinet Germany to remedy the identified deficiencies within a specified timeframe and to submit regular progress reports on remediation efforts. The supervisory measures are based on Section 51(2) of the Money Laundering Act and Section 5(4) of the Securities Institution Act. The measures became final on May 4, 2026, and are published in accordance with Section 57 of the Money Laundering Act.