Luxembourg Regulator Fines Rakuten Europe Bank €185,000 for AML Lapses

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Luxembourg’s financial watchdog, the Commission de Surveillance du Secteur Financier (CSSF), has fined Rakuten Europe Bank €185,000 ($216,000) for breaches of its anti-money laundering (AML) and counter-terrorist financing (CTF) obligations, following an inspection of the bank’s compliance framework and its corrective actions. 

The fine amounts to approximately 1% of the bank’s annual turnover from the end of 2022.

The sanction was made public by the CSSF on January 6, 2026, but stems from an on-site inspection made between February and November 2023. The CSSF found that Rakuten Europe Bank did not have a suitable transaction monitoring system and did not properly address alerts related to potential sanctions violations and suspicious activity. 

An unspecified European national monitoring authority had raised similar concerns regarding the bank’s practices in 2019 and 2020.

According to the CSSF, the bank’s monitoring tool was outdated, improperly configured, and failed to monitor all transactions. The regulator also identified recurring delays in processing alerts, including limited scrutiny of politically exposed persons and sanctions lists, and late filing of suspicious activity reports with Luxembourg’s Financial Intelligence Unit.

Rakuten Europe Bank has acknowledged the findings and has since begun taking steps to address failings.