BaFin orders Instinet Germany to remedy anti-money laundering failings

FRANKFURT, June 10, 2026 — Germany’s financial regulator BaFin ordered Instinet Germany GmbH to remedy extensive deficiencies in its prevention of money laundering and terrorist financing, after multiple examinations found shortcomings in the firm’s business organization across reviewed areas.

BaFin said the failings included risk analysis, the money laundering reporting officer function, customer onboarding, customer risk assessment and compliance with enhanced due diligence obligations. The regulator said the deficiencies meant the firm breached requirements under the Securities Institutions Act and the Money Laundering Act.

The supervisory action was imposed after the institution’s own remediation plans proved unsuccessful. BaFin said it can require an institution to correct deficiencies within a set period and to report regularly on remediation progress, and that it had ordered those measures against Instinet Germany.

The measures were issued on the basis of Section 51(2), sentence 1 of the Money Laundering Act and Section 5(4), sentence 1 of the Securities Institutions Act. BaFin said the measures have been legally final since May 4, 2026, and published them under Section 57 of the Money Laundering Act.