The bank says it is fully cooperating with authorities
A for Deutsche Bank said the bank is fully cooperating with authorities.
Shares of the bank fell over 3% on the news.
Banks alert authorities of suspicious transactions, including money laundering, through the so-called suspicious activity reports. They are expected to be timely. Authorities then decide whether to investigate the case or not.
Deutsche Bank has run into troubles with regulators in the past over its compliance with money-laundering detection. It has paid fines in the US for failing to properly monitor its dealings with late financier and convicted sex offender Jeffrey Epstein and for its role as a correspondent bank for the Estonian branch of Danske Bank,
where some $230 billion had flowed from Russia and other former Soviet states over years with minimal oversight.
Last year, the Federal Reserve told Deutsche Bank that it was failing to address persistent shortcomings in its anti-money-laundering controls. Around the same time, BaFin ordered the bank to adopt further internal safeguards and comply with due diligence obligations.
Deutsche Bank is Germany’s largest lender and, as a dollar clearing bank regulated by the Fed, is a major player in global financial transactions.
The bank has said it is pouring resources to improve its controls and prevent and detect money laundering. Chief Executive Officer Christian Sewing has been trying to show his bank has changed and is no longer the troubled lender constantly embroiled in financial scandals.
The bank reported strong financial results earlier this week, a sign that an overhaul to make it leaner and more focused on its German clients is paying dividends. The outlook, however, has clouded over the war in Ukraine and rising inflation.
Credit: www.wsj.com /