Fines for anti-money-laundering failures? Deutsche Bank’s paid’em. Lots of ‘em, in fact. There was the $625 million paid to British and American regulators for helping Russian baddies spirit $10 billion out of that country. There was the €22 million paid to its hometown prosecutors office for sloppiness with suspicious activity reports, especially those regarding a certain Assad family of Syria. There was the $150 million paid to New York State’s Department of Financial Services for some other Russian money laundering via Estonia and Denmark, as well as helping a noted convicted pederast keep his millions clean. Another $26.3 million to quiet shareholders unhappy about the same. And all that’s even after the bank incredibly managed to avoid levies for its alleged role in the 1MDB scandal or for its work on behalf of the former president of the United States.
And still, the rebukes from regulators and visits from the police regarding Deutsche Bank’s apparent inability to do anything about its AML lapses, despite some €2 billion worth of investment to fix them and a complete compliance overhaul, keep on coming. Well, the other DB’s chief regulator, Germany’s BaFin, seems to think, against all the available evidence, that another big, fat punitive check might finally tip the balance.
Bonn-based BaFin on Friday again publicly rebuked the country’s largest bank, highlighting that attempts over a number of years to improve measures against financial crime continued to fall short of expectations…. The latest directive shows BaFin is still not satisfied and fears Deutsche may miss crucial deadlines falling due in mid-2023. Should they not be met, the regulator was prepared to hand out fines, it said on Friday evening.
BaFin notably hasn’t joined the monetary penalty party, befitting its reputation as rather friendly to those it purports to police. It expressed its unhappiness by imposing KPMG to keep an eye on Deutsche progress on the matter. KPMG did such a bang-up job there—as it did keeping tabs on Deutsche’s ESG program—that BaFin expanded its remit, while retaining its capacity to be shocked by endlessly repeated failure to consider doing something which everyone else has tried to no effect. That’ll certainly get Christian Sewing & co. to finally do in six months what they and their predecessors have singularly been unable or unwilling to do for more than six years.
BaFin threatens Deutsche Bank with fines as deadlines to fix controls approach [FT]
Deutsche Bank in $26.3 million shareholder settlement over Epstein, Russian oligarch ties [Reuters]
Deutsche Bank Settles Money-Laundering Case for $7.1 Million [Bloomberg]
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