The FED fines Deutsche Bank 186 million euros
The Federal Reserve of the United States fined the German group Deutsche Bank with 186 million euros for breaching its commitments in the prevention of money laundering
The Federal Reserve of the United States (Fed) has fined the Deutsche Bank group, its division in New York and other subsidiaries in the country with 186.4 million dollars (166.7 million euros) after concluding that the German entity did not apply sufficient measures to prevent money laundering nor did it “sufficiently” mitigate the risks in its relationship with the Danske Bank subsidiary in Estonia.
“The board has determined that Deutsche Bank made insufficient remedial progress following court orders in 2015 and 2017 and found that internal anti-money laundering controls and governance processes were deficient in its previous relationship with the Estonian division of Danske Bank,” the Fed reasoned in a report released Wednesday.
The penalty imposed is subdivided into two tranches, of which 140.2 million dollars (125.4 million euros) correspond to the fine for failing to comply with previous decrees, while 46.2 million dollars (41.3 million euros) are justified by “unsafe and irresponsible” governance practices in their dealings with Danske Estonia.
The Fed has ensured that this subsidiary had a long history of high-risk ‘ratings’, as well as high levels of suspicious activities that Deutsche Bank did not “sufficiently mitigate” despite warnings issued in 2013 and 2014 by its own ‘senior’ staff in charge of legal ‘compliance’. It was not until October 2015 that Deutsche Bank terminated the relationship with Danske Estonia.
Likewise, the issuing institute has informed that the new document obliges Deutsche Bank to “prioritize” compliance with other requirements of “critical” importance of the orders previously issued by the board. As part of the process, the German bank will need to review its risk management and governance policies.
Source: dpa
(Reference image source: cmophoto.net, Unsplash)
Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on Twitter and Instagram
