According to Reuters, the German lender has been struggling to get on good terms with regulators in Europe and the United States for several years. This new fine is linked to the entity’s money laundering control issues, but it relates to other problems as well, which were previously identified by the US Central Bank.
The bank has also been instructed to work on its risk and data management, and if it doesn’t address at least some of its issues, the Federal Reserve (Fed) revealed that it would launch additional and escalated penalties. Previous problems were identified in 2015 and 2017 consent orders, and they included deficient controls in Deutsche's relationship with the Estonian branch of Danske Bank. Even though Deutsche ended its relationship with Danske Bank in 2015, the former’s money laundering policy problems persisted.
Deutsche Bank issued a statement in which it highlighted its intentions to address the shortcomings identified by the Fed. Representatives from the bank also addressed the fine and revealed that it is largely covered by provisions taken in prior quarters.
In November 2022, BaFin told Deutsche Bank to improve its money laundering controls, and in 2021, the bank agreed to pay USD 125 million to avoid prosecution on charges that it manipulated precious metals markets and engaged in foreign bribery schemes.
Apart from its troubles with regulators, Deutsche Bank has engaged in several partnerships in 2023 and even secured millions in capital allocation.
In June 2023, Deutsche Bank raised USD 100 million in capital allocation increase for the development of its Ho Chi Minh City branch. The financial institution revealed that it will use the funds to improve its development and expansion procedure, as well as to undertake more activities for its clients and customers. According to the official press release, this raise brought the branch investment total to more than USD 200 million.
In May 2023, Deutsche Bank partnered with Moss in order to provide instant transfers, new products, and German IBANs for European customers. The bank also took over the payment transaction processing between the Moss platform and its customers. Moss offers a software solution for holistic expense management, including the settlement of employee expenses, the digital recording and approval of invoices, and budget and liquidity management.
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