BaFin orders Deutsche Bank to strengthen its AML guarantees
The announcement stated that the order had been issued “to prevent money laundering and terrorist financing” and that Deutsche Bank should “adopt other appropriate internal safeguards and comply with due diligence obligations, especially with regard to regular customer reviews ”.
He added: “This also applies to correspondent relationships and transaction monitoring.”
The ordinance refers to the installation in 2018 of a regulator at Deutsche Bank to monitor the bank’s progress in the fight against money laundering, Reuters reported.
“The order is the result of a constructive prudential dialogue with BaFin and reflects that the bank continues to attach the highest priority to detecting and correcting possible weaknesses in the supervisory processes,” Deutsche Bank said. about the latest announcement in a statement, per Reuters.
“We are working intensively to also comply with the new requirements on time,” the statement added, according to Reuters.
Deutsche Bank was fined around $ 700 million in 2017 for failing to end money laundering, especially for a scheme that saw $ 10 billion laundered outside of Russia, according to Reuters. the US Department of Justice (DOJ) continues to investigate the matter.
PYMNTS reported in April that a number of major financial regulators, including the Financial Crimes Enforcement Network (FinCEN), the Financial Sector Regulatory Authority (FINRA), the Security and Trade Commission (SEC) and the Commodity Futures Trading Commission (CFTC), have warned financial institutions (FIs) to be particularly vigilant about possible money laundering.
One of the factors of the increased risk of potential money laundering is that global financial pressures can erode the profits of FIs and make the cost of anti-fraud operations increasingly painful.
Separately, Deutsche Bank announced on April 30 that its Chinese unit had been approved for open market loan in China.
The company said in a press release: “As the first bank in the Eurozone to achieve this qualification, Deutsche Bank China and PBOC will carry out open market activities such as the buyback of treasury bills, financial bonds of policy, spot bond transactions, issuance of central bank bills. and other negotiating instruments. “