Deutsche Bank fined $41m for lack of anti-money laundering deficiencies
31 May 2017 Washington DC
Image: Shutterstock
Deutsche Bank is facing a $41 million penalty and a consent cease and desist order from the US Federal Reserve for 鈥渟ignificant deficiencies鈥� in its anti-money laundering management.
The Federal Reserve discovered 鈥渦nsafe and unsound practices at the firm's domestic banking operations鈥�.
鈥淔ailures鈥� were identified in Deutsche Bank's US banking operations to maintain an effective programme to comply with the Bank Secrecy Act and anti-money laundering laws.
The consent order requires Deutsche Bank to improve its senior management oversight and controls related to its US banking operations鈥� compliance with anti-money laundering laws.
Deficiencies in the bank鈥檚 transaction monitoring capabilities prevented it from properly assessing anti-money laundering risk for 鈥渂illions of dollars in potentially suspicious transactions processed between 2011 and 2015鈥� for some of Deutsche Bank鈥檚 European affiliates, which had failed to provide sufficiently accurate and complete information.
A Deutsche Bank spokesperson said: 鈥淲e are committed to implementing every remediation measure referenced in the Fed鈥檚 order and to meeting their expectations.鈥�
The bank was also issued with two fines in January over anti-money laundering failings.
The bank was ordered to pay a penalty of 拢163.1 million to the UK鈥檚 Financial Conduct Authority, the largest ever imposed by the regulator.
The New York State Department of Financial Services also received $425 million to settle the investigation into violations of the state鈥檚 anti-money laundering laws.
The Federal Reserve discovered 鈥渦nsafe and unsound practices at the firm's domestic banking operations鈥�.
鈥淔ailures鈥� were identified in Deutsche Bank's US banking operations to maintain an effective programme to comply with the Bank Secrecy Act and anti-money laundering laws.
The consent order requires Deutsche Bank to improve its senior management oversight and controls related to its US banking operations鈥� compliance with anti-money laundering laws.
Deficiencies in the bank鈥檚 transaction monitoring capabilities prevented it from properly assessing anti-money laundering risk for 鈥渂illions of dollars in potentially suspicious transactions processed between 2011 and 2015鈥� for some of Deutsche Bank鈥檚 European affiliates, which had failed to provide sufficiently accurate and complete information.
A Deutsche Bank spokesperson said: 鈥淲e are committed to implementing every remediation measure referenced in the Fed鈥檚 order and to meeting their expectations.鈥�
The bank was also issued with two fines in January over anti-money laundering failings.
The bank was ordered to pay a penalty of 拢163.1 million to the UK鈥檚 Financial Conduct Authority, the largest ever imposed by the regulator.
The New York State Department of Financial Services also received $425 million to settle the investigation into violations of the state鈥檚 anti-money laundering laws.
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