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U.S. Fed Ramps Up Scrutiny of Deutsche Bank Over $230 Billion Danske Bank Money Laundering Scandal

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Ulrich Stephan Deutsche Bank
Image: Shutterstock

From CCN.com: German lender Deutsche Bank is below investigation by way of U.S. government over suspicions of aiding money laundering for a correspondent financial institution.

According to Bloomberg, the U.S. Federal Reserve is scrutinizing how Germany’s greatest banking establishment treated suspicious transactions from Danish lender Danske Bank. Alongside different regulators, the Fed has an obligation to verify monetary establishments below its purview observe anti-money laundering laws.

Did Deutsche Bank Conduct Adequate Due Diligence?

Per the record, the Fed’s focal point is on whether or not Deutsche Bank, as a correspondent financial institution of Danske, undertook ok tracking of budget transfers it carried out on the request of the Danish lender.

This was once in particular on the subject of transactions performed on behalf of Danske financial institution’s Estonian department. Already, Danske has confessed that an enormous a part of the $230 billion that flowed thru its Estonian operation was once tainted.

Danske Bank headquarters in Copenhagen, Denmark. Image: Shutterstock

Deutsche Bank has within the period in-between denied that it’s being probed by way of the Federal Reserve. The German lender has on the other hand admitted that legislation enforcement companies and regulators internationally have made more than a few knowledge requests:

There are not any probes however we have now gained a number of requests for info from regulators and legislation enforcement companies around the globe.

Second Internal Investigation Already Underway

This comes a bit of over every week since Deutsche Bank indicated that it had began a 2nd probe in regards to the Danske Bank money-laundering scandal. The financial institution’s CEO, Christian Sewing, published this at an tournament in Berlin, in step with the Financial Times:

We do have a large hobby in proceeding to get to the ground. Hence when it comes to Danske, we began any other inner investigation.

During the similar tournament Sewing additionally indicated that initial findings had no longer published any proof of Deutsche Bank being at fault.

Since the scandal got here to gentle, the German lender has stopped clearing bucks for the Danske Bank’s Estonian operations.

Not DB’s First Time to Come Under Fire Over Money Laundering

This isn’t the primary time that Deutsche Bank is attracting regulatory consideration over cash laundering issues. Two years in the past the German lender was once fined just about $0.7 billion for possessing insufficient anti-money laundering controls. Specifically, this allowed Russian folks and entities to launder cash throughout the financial institution.

Last 12 months in November Deutsche Bank’s Frankfurt offices were raided by way of round 170 cops, tax inspectors and prosecutors. This was once in reference to cash laundering allegations as detailed within the Panama Papers which were published in 2016.

Just two months previous, Germany’s Federal Financial Supervisory Authority (BaFin) had demanded that Deutsche Bank institute stricter anti-money laundering measures.

Immediately after the reviews that the Fed was once probing Deutsche Bank emerged, stocks slid by way of over 1% in early buying and selling. Deutsche Bank’s stocks have since then recovered and are lately buying and selling above the day prior to this’s intra-day top.

Deutsche Bank inventory worth. Source: TradingView

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