Following this announcement, the company will use the license in order to separate institutional and private bank businesses from their clients and users, small businesses, and middle-market operations in Mexico. According to the press release, the terms of the sale were not disclosed.
Citigroup intended to buy Deutsche Bank's Mexican banking license last year, with the plan to sell the overall customer operation, locally known by the name of Banamex. Currently, the bank is planning to list Banamex in an IPO in 2025.
Deutsche Bank offers its clients and customers a range of corporate and investment banking tools and services, such as trade finance, cash management, advisory solutions, FX, and custody. The bank had multiple partnerships and launches in the last couple of months, covering different geographic areas around the world.
The financial institution received a USD 186 million fine from the US Federal Reserve in July 2023, for failing to address its money-laundering control challenges and issues.
The lender struggled to get on good terms with regulators in Europe as well as in the United States for the last couple of years. The fine was linked to the entity’s money laundering control issues and it related to other problems in addition to them, which were previously identified by the US Central Bank.
The bank was also instructed to work and improve its risk and data management, as the Federal Reserve (Fed) revealed that it would launch additional and escalated penalties. The previous issues were identified back in 2015 and 2017 as consent orders, and they touched on deficient controls in the agreements the Deutsche Bank had with the Estonian branch and Danske Bank.
Earlier in June 2023, Deutsche Bank announced the raise of USD 100 million in capital allocation increase, aimed at its Ho Chi Minh City branch and its overall development process. The bank leveraged the funds in order to improve its growth and expansion procedure, as well as to undertake more activities for its customers. The funds were added to the total of the branch’s investment, which brought the total sum to more than USD 200 million.
Deutsche Bank partnered with Moss at the beginning of May 2023, in order to provide instant transfers, new solutions, and German IBAs for all users and customers in Europe. The financial institution was also set to take over the payment transaction processing between the Moss platform and its users, as well as to handle the receipt, custody, and shipping of all funds for Moss.
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