Deutsche Bank faces investigation for possible money-laundering lapses: New York Times

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Published on June 20, 2019 - Duration: 01:35s

Deutsche Bank faces investigation for possible money-laundering lapses: New York Times

U.S. federal authorities are investigating whether Deutsche Bank AG complied with laws meant to stop money laundering and other crimes, the New York Times reported on Wednesday.

Pascale Davies reports.

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Deutsche Bank faces investigation for possible money-laundering lapses: New York Times

It could be yet another scandal in a long list to hit Deutsche Bank.

Germany's largest lender is facing a U.S. investigation for failing to comply with regulations meant to stop money laundering.

That according to a report in the New York Times, which Reuters has not been able to independently confirm.

The Times said the Fed investigation includes a review of the bank's handling of so-called suspicious activity reports that its employees prepared about possibly problematic transactions.

Some of which were linked to President Donald Trump's son-in-law and senior adviser, Jared Kushner.

The report said several other banks are also being investigated - in what's becoming a larger probe into how illicit funds flow through the U.S. financial system.

But for Deutsche, which has been struggling to generate financial profits since the 2008 financial crisis, it could be another nail in the coffin.

The bank was fined in 2017 in relation to money laundering in Russia, failed stress tests last year and recently abandoned merger talks with Commerzbank.

Added to that, Deutsche was reported this week as drawing up plans for a drastic restructuring to its trading operations and a so-called "bad bank" to hold over 56 billion dollars of assets.

Shares on Thursday dipped 2% on the news of the investigation before regaining some ground.

\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ U.S. federal authorities are investigating whether Deutsche Bank AG complied with laws meant to stop money laundering and other crimes, the New York Times reported on Wednesday.

Shares in Germany's biggest bank were 0.5% lower on Thursday following the New York Times report, which cited seven people it said were familiar with the inquiry.

A Deutsche Bank spokesperson declined to comment on the Times report, but said: "We remain committed to cooperating with authorized investigations." The investigation includes a review of the German bank's handling of so-called suspicious activity reports that its employees prepared about possibly problematic transactions, including some linked to President Donald Trump's son-in-law and senior adviser, Jared Kushner, the Times reported https://www.nytimes.com/2019/06/19/business/deutsche-bank-money-laundering-trump.html.

Reuters could not independently confirm the Times report, which said the investigation into Deutsche Bank is one element of several separate but overlapping government examinations into how illicit funds flow through the U.S. financial system and several other banks are also being investigated.

Earlier this month, a group of U.S. Senate Democrats urged the Federal Reserve to investigate Deutsche Bank's relationship with Trump and Kushner.

(Reporting by Ishita Chigilli Palli and Maria Ponnezhath in Bengaluru Additional reporting by Michelle Martin in Berlin Editing by Bill Rigby and Alexander Smith)

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