Announcement on the administrative fine relating to the institution's obligation of oversight

In a final and binding administrative order issued on 6 November 2024 on the basis of section 130 (1) of the German Act on Breaches of Administrative Regulations (Ordnungswidrigkeitengesetz – OWiG), the Federal Financial Supervisory Authority (BaFin) imposed an administrative fine totalling EUR 37,500 on AKBANK AG.

The administrative order has been final and binding since 29 November 2024.

Announcement on administrative fines relating to failure to provide information on the retention period for telephone recordings and failure to establish effective arrangements against insider trading and market manipulation

On 31 March 2025, BaFin imposed administrative fines amounting to EUR 395,000 on AKBANK AG.

The sanction was imposed due to contraventions of section 83 (5) of the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG) in conjunction with Article 76(8) of Delegated Regulation (EU) 2017/565 as well as Article 16 (2)(1) of the Market Abuse Regulation (MAR).

AKBANK AG had failed to inform its customers that it was retaining copies of recordings of telephone conversations for a period of 5 years.

Furthermore, AKBANK AG had not established any effective arrangements, systems or procedures for detecting and reporting suspicious orders and transactions.

The company may lodge an appeal against the administrative fine order.

Update (25.04.2025):

The administrative fine order is final and binding.

Announcement on the remedying of shortcomings, appointment of a special commissioner and increase in own funds requirements

In accordance with section 25a (2) sentence 2 of the German Banking Act (Kreditwesengesetz – KWG) and section 51 (2) sentences 1 and 2 of the German Money Laundering Act (Geldwäschegesetz – GwG), on 10 January 2025, BaFin ordered AKBANK AG to remedy numerous shortcomings that were identified in various inspections in order to ensure the institution has in place a proper business organisation. AKBANK AG must regularly report on how implementation is progressing. A special commissioner under section 45c (1) sentence 1 and (2) no. 6 of the KWG is monitoring implementation of this order. In addition, the institution must meet increased own funds requirements in accordance with section 10 (3) sentence 1 in conjunction with sentence 2 no. 2 of the KWG.

The measures are final and binding.

This order is published on the basis of section 60b of the KWG and section 57 (1) of the GwG.