In 2017, BaFin initiated a total of 316 administrative fine proceedings¹ (see info box "New administrative fine proceedings launched by BaFin").² The proceedings were launched against natural persons, payment agents, credit institutions, insurance undertakings, payment institutions and institutions engaged in finance leasing and/or factoring³ , and – where applicable – also against their responsible persons. These concerned violations of the provisions of the German Money Laundering Act (Geldwäschegesetz), the German Banking Act (Kreditwesengesetz), the German Insurance Supervision Act (Versicherungsaufsichtsgesetz), the German Capital Investment Act (Vermögensanlagegesetz), the German Securities Trading Act (Wertpapierhandelsgesetz) the German Securities Prospectus Act (Wertpapierprospektgesetz) and the German Payment Services Supervision Act (Zahlungsdiensteaufsichtsgesetz) that are punishable by a fine.

Amount of the administrative fines

Administrative fines totalling €17,940,850 were imposed across all of BaFin's directorates in 2017 (see info box "Administrative fines imposed by BaFin").

Administrative fine proceedings – Securities Supervision

In 2017, , BaFin's Securities Supervision/Asset Management Directorate imposed administrative fines totalling approximately €5.64 million⁶ for violations of capital markets law⁷ (see info box "Administrative fines imposed by BaFin"). The directorate launched 188⁸ new administrative fine proceedings; a total of 981 proceedings were still pending from the previous year. It concluded a total of 300 proceedings, 96 of them by imposing an administrative fine. The prosecution ratio was approximately 32 percent.⁹

Violations of the obligation to publish ad hoc disclosures were again a focus for Securities Supervision in 2017. 22 new proceedings were initiated in 2017, while 21 cases were concluded. BaFin concluded 11 proceedings by imposing administrative fines and discontinued 10 proceedings. Examples include an administrative fine totalling €550,000, which BaFin imposed on a German credit institution for 4 violations of the obligation to publish ad-hoc disclosures.

Administrative fine proceedings – Banking and Insurance Supervision

BaFin¹⁰ launched 37 proceedings against agents within the meaning of section 1 (7) of the Payment Services Supervision Act, old version (now section 1 (9) of the Payment Services Supervision Act) in the year under review. BaFin issued 28 administrative orders imposing a fine in these 37 proceedings and other administrative fine proceedings pending from previous years against agents. In 2017, 26 administrative orders imposing a fine on agents became final, of which 2 in a preliminary hearing following ordinary and extraordinary appeal and 2 further orders as the result of a decision by the court.

At the time of going to press, 1 case of administrative fine proceedings against agents was pending a preliminary hearing following a permissible appeal. 10 others were concluded using the warning procedure¹¹ since, once the investigations were complete, the administrative offences were able to be judged as only minor. BaFin discontinued¹² 12 other proceedings; 1 had to be dismissed due to an impediment to the proceedings. In 2017, BaFin imposed fines totalling €45,300 against agents within the meaning of section 1 (7) of the Payment Services Supervision Act, old version.

Due to violations of provisions of the Money Laundering Act, the Payment Services Supervision Act, the Banking Act and the Insurance Supervision Act that are punishable by a fine, BaFin¹³ initiated 91 proceedings in accordance with the German Act on Breaches of Administrative Regulations (Ordnungswidrigkeitengesetz) in the year under review – against credit institutions, insurance undertakings, payment institutions and institutions that engage in financial leasing and/or factoring.¹⁴ Of these, 78 were attributable to the Banking Supervision Directorate, 2 to the Internal Administration and Legal Affairs Directorate, 3 to the Securities Supervision Directorate and 8 to the Insurance Supervision Directorate.

In the year under review, BaFin issued 38 administrative orders imposing a fine in these proceedings and others pending from previous years: 34 in the Banking Supervision Directorate, 2 in the Securities Supervision Directorate and 2 in the Insurance Supervision Directorate. 26 of these administrative orders imposing a fine became final in 2017 (22 from the Banking Supervision Directorate, 2 from the Insurance Supervision Directorate and 2 from the Securities Supervision Directorate); 7 of these orders were the subject of a court decision (all of these from the Banking Supervision Directorate).

At the time of going to press, 4 proceedings were pending a preliminary hearing (all from the Banking Supervision Directorate). In the year under review, a total of 77 proceedings, some of which had been initiated in prior years, were discontinued, 48 of them for discretionary reasons (45 from the Banking Supervision Directorate, 1 from the Internal Administration and Legal Affairs Directorate and 2 from the Insurance Supervision Directorate).¹⁵ 32 proceedings were terminated in other ways, for example by issuing warnings, discontinuing proceedings in accordance with section 46 (1) of the Act on Breaches of Administrative Regulations in conjunction with section 170 (2) of the German Code of Criminal Procedure (Strafprozessordnung), referrals to public prosecutors' offices in accordance with section 41 (1) of the Act on Breaches of Administrative Regulations (26 from the Banking Supervision Directorate, 1 from the Securities Supervision Directorate and 5 from the Insurance Supervision Directorate).

Amount of the administrative fines

In 2017, BaFin imposed a total of 476 individual administrative fines in a total amount of €12,300,850 against credit institutions, insurance undertakings, payment institutions and institutions that engage in financial leasing and/or factoring, and – where applicable – also against their responsible persons, for violations of the Money Laundering Act, the Payment Services Supervision Act, the Investment Code and the Insurance Supervision Act.