Digital challenger Bunq wins “landmark” case against Dutch Central Bank

Digital challenger Bunq has won its appeal against the Dutch Central Bank (DNB) regarding the use of modern technology such as AI and machine learning for anti-money laundering (AML) checks.

The firm took the regulator to court earlier this year to challenge what it calls the DNB’s “antiquated and ineffective” AML strategy.

“Where DNB insisted on using one-sided reporting from account holders – a system resting squarely on the honesty of fraudsters – Bunq favoured the use of technology such as machine learning to fight money laundering effectively,” Bunq says.

“Today, the Dutch court ruled in favour of Bunq’s stance.”

Describing the appeal as a “landmark case”, Bunq says it is the first time a bank has sued a regulator “over such a fundamental issue”, adding firms usually prefer to settle any disputes “behind closed doors”.

“Bunq however considered the long-term detriment to its own users and, on a larger scale, the stability of the banking system as a whole, had it yielded to DNB’s anti-money laundering strategy,” the bank says.

Bunq’s founder and CEO Ali Niknam adds: “We made history today. The court has paved the way for progress.”

In May this year, the challenger become the second largest neobank in the European Union with the acquisition of Belgian fintech Tricount for an undisclosed sum.