31 May 2017

US Federal reserve fines Deutsche Bank $41 million over money laundering violations

The US Federal Reserve has fined Deutsche Bank $41 million after it was found to have failed to screen billions of dollars in potentially suspicions transactions.

Fabio Formaggio

This is the latest legal blow in the US for the German financial house. Only last month, Deutsche Bank paid more than $150 million for ‘unsafe and unsound’ foreign exchange practices and lax oversight. In this latest case, the Federal Reserve said that between 2011 and 2015, a New York unit of the bank, Deutsche Bank Trust Company Americas, processed billions of dollars in potentially suspicious transactions for European affiliates without the proper screening. Deutsche Bank must now improve internal anti-money laundering controls, which regulators at the Fed found to be deficient on top of the fine.

Further investigations

However,  Deutsche Bank may have further challenges. It is understood that the Justice Department is investigating the bank’s actions in Russia and so-called mirror trades in which bank clients disguised the movement of money out of that country. The bank settled with New York and British authorities over the matter in January, agreeing to pay nearly $630 million.