Deutsche Bank faces $186m penalty over AML failures


Deutsche Bank has been hit with a fine of $186m by the Federal Reserve Board due to deficient AML practices and other violations.

This comes as a result of Deutsche Bank’s failure to make adequate progress in addressing its prior orders from 2015 and 2017 relating to sanctions compliance and AML controls.

The Federal Reserve Board has identified Deutsche Bank’s weak internal controls and governance processes, particularly concerning its prior relationship with the Estonian branch of Danske Bank, as contributing factors to the inadequate AML practices. To address these concerns, a new consent order has been issued requiring Deutsche Bank to prioritise the completion of several crucial requirements from the Board’s prior orders.

Simultaneously, the Federal Reserve Board has put forth a Written Agreement addressing a wider array of issues relating to Deutsche Bank’s governance, risk management, and control deficiencies. The recent measures come in the wake of last year’s events when German prosecutors raided Deutsche Bank’s headquarters and its subsidiary DWS following allegations of misleading investors over green investments.

This double blow signals the need for Deutsche Bank to significantly reform its internal practices and reaffirms the importance of stringent AML measures in the banking sector.

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