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.

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