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Deutsche Bank must pay $186 million in the U.S. after Germany’s biggest bank did not take enough steps to improve money-laundering controls. The fine was imposed after an investigation by the US Federal Reserve.
AP
July 19, 2023
In a statement, the Federal Reserve spoke of “unsafe and unsound” banking practices at Deutsche Bank’s US subsidiary. Deutsche Bank’s relationship with Danske Bank’s subsidiary in Estonia was also mentioned. A large amount of money was laundered by foreign criminals through that branch of Danske Bank. The central bank said Deutsche Bank had “weak internal anti-money laundering controls and governance processes” in its relationship with Danske Bank.
According to the central bank, Deutsche Bank has shown some improvement in money laundering monitoring, but there is still a high level of risk. The bank now says it will take additional steps. Deutsche Bank has already hired several additional staff to better monitor financial transactions. Deutsche Bank has been fined for frequent irregularities and scandals in the US.
Dutch banks have also received heavy fines for laxity in money laundering checks. In 2018, ING reached a settlement with OM for 775 million euros for “gross negligence.” ABN AMRO had to pay a fine of 480 million euros in 2021.