The Federal Financial Supervisory Authority (BaFin)
has imposed an administrative fine of €170,000 euros on Deutsche Bank AG. The
fine was imposed against the bank after the regulator discovered that it had
failed to promptly submit a report concerning suspicious transactions, an
important aspect in preventing money laundering and terrorist financing.
In a statement, the BaFin stated that the bank’s
failure to submit suspicious transaction reports promptly has serious
implications for the integrity of the financial sector and the broader efforts
to combat illicit financial activities.
The regulator added that the submission of such
reports allows authorities to take swift action, such as forwarding information
to law enforcement agencies when necessary.
“Credit institutions must submit a report to
the German Financial Intelligence Unit if they suspect that a business
transaction or other transaction might be related to money laundering or
terrorist financing,” BaFin said.
It is not the first time that Deutsche Bank has been
at loggerheads with the financial authorities. In September, the Securities and
Exchange Commission (SEC) imposed a fine worth $25 million against DWS Investment
Management Americas Inc. (DIMA), a subsidiary of Deutsche Bank.
Deutsche Bank Faces Multiple Regulatory Actions
This penalty comes from two separate enforcement
actions: DIMA’s failure to institute an effective Anti-Money Laundering program and misleading statements about its Environmental, Social, and Governance investment practices. The alleged failure violated the Bank
Secrecy Act and Financial Crimes Enforcement Network regulations.
Despite advising mutual funds with substantial
assets, DIMA allegedly did not establish policies and procedures to detect
money laundering activities as required by law. Gurbir S. Grewal, the Director
of the SEC’s Division of Enforcement, emphasized the importance of tailored AML
programs for mutual funds.
Despite marketing itself as an ESG leader, the SEC
found that DIMA failed to adequately implement its global ESG integration
policy between August 2018 and late 2021.
The Federal Financial Supervisory Authority (BaFin)
has imposed an administrative fine of €170,000 euros on Deutsche Bank AG. The
fine was imposed against the bank after the regulator discovered that it had
failed to promptly submit a report concerning suspicious transactions, an
important aspect in preventing money laundering and terrorist financing.
In a statement, the BaFin stated that the bank’s
failure to submit suspicious transaction reports promptly has serious
implications for the integrity of the financial sector and the broader efforts
to combat illicit financial activities.
The regulator added that the submission of such
reports allows authorities to take swift action, such as forwarding information
to law enforcement agencies when necessary.
“Credit institutions must submit a report to
the German Financial Intelligence Unit if they suspect that a business
transaction or other transaction might be related to money laundering or
terrorist financing,” BaFin said.
It is not the first time that Deutsche Bank has been
at loggerheads with the financial authorities. In September, the Securities and
Exchange Commission (SEC) imposed a fine worth $25 million against DWS Investment
Management Americas Inc. (DIMA), a subsidiary of Deutsche Bank.
Deutsche Bank Faces Multiple Regulatory Actions
This penalty comes from two separate enforcement
actions: DIMA’s failure to institute an effective Anti-Money Laundering program and misleading statements about its Environmental, Social, and Governance investment practices. The alleged failure violated the Bank
Secrecy Act and Financial Crimes Enforcement Network regulations.
Despite advising mutual funds with substantial
assets, DIMA allegedly did not establish policies and procedures to detect
money laundering activities as required by law. Gurbir S. Grewal, the Director
of the SEC’s Division of Enforcement, emphasized the importance of tailored AML
programs for mutual funds.
Despite marketing itself as an ESG leader, the SEC
found that DIMA failed to adequately implement its global ESG integration
policy between August 2018 and late 2021.
