German authorities searched
Deutsche Bank AG’s
DB -3.52%
headquarters in Frankfurt on Friday, a transfer the financial institution mentioned was associated to suspicious exercise stories it filed to an anti-money-laundering company.
Agents from Frankfurt’s prosecutor’s workplace, German monetary regulator BaFin and the federal police confirmed up at Deutsche Bank with a search warrant issued by the Frankfurt native courtroom, the prosecutor’s workplace mentioned in a press release. It mentioned it couldn’t present additional data.
A spokesman for Deutsche Bank mentioned the financial institution is totally cooperating with authorities.
Shares of the financial institution fell over 3% on the information.
Banks alert authorities of suspicious transactions, together with cash laundering, by way of the so-called suspicious exercise stories. They are anticipated to be well timed. Authorities then resolve whether or not to analyze the case or not.
Deutsche Bank has run into troubles with regulators up to now over its compliance with money-laundering detection. It has paid fines within the U.S. for failing to correctly monitor its dealings with late financier and convicted intercourse offender Jeffrey Epstein and for its function as a correspondent financial institution for the Estonian department of
Danske Bank,
the place some $230 billion had flowed from Russia and different former Soviet states over years with minimal oversight.
Last yr, the Federal Reserve informed Deutsche Bank that it was failing to deal with persistent shortcomings in its anti-money-laundering controls. Around the identical time, BaFin ordered the financial institution to undertake additional inside safeguards and adjust to due diligence obligations.
Deutsche Bank is Germany’s largest lender and, as a greenback clearing financial institution regulated by the Fed, is a significant participant in world monetary transactions.
The financial institution has mentioned it’s pouring assets to enhance its controls and forestall and detect cash laundering. Chief Executive Officer
Christian Sewing
has been making an attempt to point out his financial institution has modified and is not the troubled lender continuously embroiled in monetary scandals.
The financial institution reported robust monetary outcomes earlier this week, an indication that an overhaul to make it leaner and extra targeted on its German shoppers is paying dividends. The outlook, nonetheless, has clouded over the battle in Ukraine and rising inflation.
Write to Patricia Kowsmann at [email protected]
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Appeared within the April 30, 2022, print version as ‘Deutsche Bank Faces Scrutiny in Germany.’
Source: www.wsj.com”