Washington DC
31 May 2017
Reporter: Drew Nicol

Deutsche Bank fined $41m for lack of anti-money laundering deficiencies


Deutsche Bank is facing a $41 million penalty and a consent cease and desist order from the US Federal Reserve for “significant deficiencies” in its anti-money laundering management.

The Federal Reserve discovered “unsafe and unsound practices at the firm's domestic banking operations”.

“Failures” 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’ compliance with anti-money laundering laws.

Deficiencies in the bank’s transaction monitoring capabilities prevented it from properly assessing anti-money laundering risk for “billions of dollars in potentially suspicious transactions processed between 2011 and 2015” for some of Deutsche Bank’s European affiliates, which had failed to provide sufficiently accurate and complete information.

Deutsche Bank, which is yet to reply to a request for comment on this fresh cease and desist order, was issued with two fines in January over anti-money laundering failings.

The bank was ordered to pay a penalty of £163.1 million to the UK’s 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’s anti-money laundering laws.

More regulation news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Aquis launches SI hub for MiFID II compliance
17 January 2018 | London | Reporter: Jenna Lomax
Aquis Technologies has launched a connectivity hub to meet with the new MiFID II stipulations
AQ Metrics authorised as ARM by Central Bank of Ireland
08 January 2018 | Dublin | Reporter: Jenna Lomax
The Central Bank of Ireland has authorised AQ Metrics as an approved reporting mechanism
Industry participants react to MiFID II
05 January 2018 | London | Reporter: Jenna Lomax
After MiFID II went live two days ago (3 January), industry participants share their views about what it actually means for the industry going forward
MiFID II goes live
03 January 2018 | London | Reporter: Becky Butcher
The second Markets in Financial Instruments Directive (MiFID II) has now become effective as a part of EU legislation
ESMA delays LEI requirements for MiFID II
22 December 2017 | Paris | Reporter: Becky Butcher
The European Markets and Securities Authority (ESMA) has issued a delay to the enforcement of the LEI requirements for the MiFID II
EFAMA welcomes EC proposal
21 December 2017 | Brussels | Reporter: Becky Butcher
EFAMA has welcomed the European Commission’s proposal for a directive and regulation to establish a self-standing prudential regime for investment firms
Euronext’s ARM and APA approved
14 December 2017 | Paris | Reporter: Stephanie Palmer
Euronext has been approved by the French regulator to provide approved publication arrangement and approved reporting mechanism services to investment firms in Europe, under MiFID II
More regulation news