Fed fines Deutsche Bank for slowness in anti-money laundering measures

The Federal Reserve reported on Wednesday that it fined Deutsche Bank and its US subsidiaries $186 million for failing to sufficiently address money laundering and other shortcomings identified by the US central bank.

Deutsche Bank must prioritize fixing several of those issues or face sanctions.”additions and escalationssaid the fedwhich imposed additional restrictions and ordered the bank to improve its risk and data management.

The fed identified previous problems in consent orders from 2015 and 2017, which stemmed from poor controls on the relationship of Deutsche with the Estonian branch of Danske Bank, which ended in 2015.

In December, Danske Bank pleaded guilty to a bank fraud conspiracy and agreed to forfeit $2 billion to settle a lengthy Justice Department investigation into billions of dollars in illicit payments.

The branch of the bank in Estonia It allowed some 200 billion euros ($223.78 billion) in funds from high-risk clients in Russia and other countries to flow into the US financial system.

In his last order, the fed said he found that a “significant part” of the $276 billion in transactions that Deutsche offset for danske implied “high-risk non-resident customers”. The deficiencies in the policies of Deutsche about money laundering persisted after his relationship with danske end in 2015, according to the fed.

Deutsche Bank said Wednesday that it recognizes the need to strengthen compliance controls in response to the fine imposed by the Fed.We also recognize that these actions reinforce the need to ensure we meet our commitments and close our remediation obligations in the near future.”, said the statement from the German bank.

The fine will be mainly covered by provisions taken in previous quarters, he added.

Source: Reuters