December 19, 2019

Deutsche Bank resolves Frankfurt AML investigation

In a media release on December 6, 2019, Deutsche Bank AG announced that it had resolved an investigation by the Staatsanwaltschaft Frankfurt (the Frankfurt public prosecutor’s office) into interactions between German clients of the bank with offshore entities established by Regula Ltd., formerly a subsidiary of Deutsche Bank.  The bank has agreed to pay €15 million — €10 million representing avoided expenses, and a fine of €5 million — due to shortcomings in the bank’s control environment.  At the same time, the Staatsanwaltschaft closed its investigation into the bank and two of its employees, finding that suspicions of money laundering and aiding and abetting tax evasion were insufficiently supported.

A spokesman for Deutsche Bank stated that the bank had identified weaknesses in its control environment in the past, and had addressed them “in a disciplined manner,” investing €700 million in modernizing its key controls, and tripling the number of employees in its Anti-financial Crime unit.

Deutsche Bank said that it is still in discussions with the public prosecutor’s office in connection with the Danske Bank investigation.

Deutsche Bank media release