In July 2023, the Federal Reserve in the US fined Deutsche Bank and its U.S. affiliates $186 million in penalties for failing to tackle anti-money laundering (AML) control issues and previous shortcomings as identified by the U.S. central bank.
Why?
The penalties involved following past failures:
2015: Deficient controls in Deutsche's relationship with the Estonian branch of Danske Bank.
2017: More shortcomings come to light from Deutsche Bank's handling of transactions with Danske Bank.
2021: Deutsche Bank agrees to pay $125 million to avoid prosecution for manipulating precious metals markets and engaging in foreign bribery schemes.
2021: The bank settles a $75 million lawsuit over allegations of facilitating sex trafficking by the late financier Jeffrey Epstein.
November 2022: BaFin (German regulator) instructs Deutsche Bank to improve its AML controls.
December 2022: Danske pleads guilty to a bank fraud conspiracy related to its activities.
July 2023: The Federal Reserve announced a $186 million penalty on Deutsche Bank.
Other issues: U.S. and German regulators have initiated probes into greenwashing allegations at Deutsche-controlled investment management firm DWS.
Deutsche Bank has faced multiple failures and penalties 💵 during the last few years, making it difficult for the bank to gain trust from regulators in Europe and the United States.
For Deutsche Bank, rebuilding its reputation and regulatory standing has become a significant challenge!
Not only for customers and other stakeholders but also for regulators.
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