At points over the difficult decade suffered by Deutsche Bank, some have suggested that the seemingly bottomless pit of legal and regulatory troubles it faced might point to some deeper problem. Sometimes gently, sometimes less so, regulators and other concerned observers, noting the depth and breadth of the things Deutsche Bank does wrong, implied that some soul searching might be in order, at the very least a long, hard look at what appear to any sentient observer to be some very serious systemic problems in terms of internal controls and compliance functions.
Through it all, and in the face of the evidence to the contrary, Deutsche Bank said, “nein,” favoring the “ein paar faule Äpfel” theory once propounded by an arguably equally-systematically challenged bank its former CEO dreamed of running. However, whether in light of recent events or a more considered consideration of its past, Deutsche Bank is coming around to the idea that there might, in fact, be some deeper issues it should consider addressing.
The changes, which go into effect July 1, are part of a shift away from fixing specific compliance shortcomings and toward tackling regulatory challenges in a more holistic and efficient manner, Deutsche Bank Chief Administrative Officer Stefan Simon wrote in the memo…. The changes appear to be an effort to increase the clout of the bank’s anti-financial crimes unit, which is responsible for ensuring compliance with anti-money-laundering and anticorruption laws and economic sanctions, among other regulations, compliance experts say…. To make it more effective at fighting financial crime, the bank will give more attention to several core areas, including risk assessment, controls testing and transaction monitoring, he said.
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