Compliance
US Widens Probe Into Sanctions Violations Allegations Around Deutsche Bank - Report
Germany's largest bank is the subject of a widening investigation by the US into sanctions breaches concerning Russia, a report says.
US regulators are widening their investigation into Deutsche Bank as part of a money laundering probe against a Moscow unit and concerns about possible breaches of sanctions, according to the Financial Times.
The publication said the US Justice Department and New York State's Department of Financial Services are increasing the scope of their investigation into Germany’s largest bank because some transactions allegedly involved US dollars and a former banker who is a US citizen.
"Deutsche Bank is investigating the circumstances around equity trades entered in to by certain clients with Deutsche Bank in Moscow and London that offset one another. Deutsche Bank has advised regulators and law enforcement authorities in several jurisdictions (including Germany, Russia, the UK and US) of this investigation. Deutsche Bank has taken disciplinary measures with regards to certain individuals in this matter and will continue to do so with respect to others as warranted," the bank told this publication when asked about the matter.
The probe, which concerns trades worth $6 billon, would be one of the first by the US authorities regarding a potential breach of Western sanctions against Russia after its 2014 annexation of Crimea.
A number of banks, such as in the recent case of French bank Crédit Agricole last week (see here), have been punished for sanctions breaches against countries such as Sudan. Last year, BNP Paribas, the French lender, reached settlements totalling $8.9 billion for sanctions violations; the severity of the BNP Paribas fines caused tensions between the US and French governments.
Reuters reported in July that the US Department of Financial Services had asked Deutsche Bank for detailed information on possible money-laundering transactions by some clients in Russia that could exceed a total of $6 billion.
Deutsche has recently announced a major set of management and business structure changes, affecting business divisions including its wealth and asset management operations (see here).
