With Europe still reeling over the recent revelations of Danske Bank’s $234 Billion money-laundering scandal, another target emerged moments ago – and a far more prominent one – when Germany’s markets regulator ordered Deutsche Bank to “improve its controls to prevent money laundering and the financing of terrorism.”
The regulator BaFin instructed Deutsche Bank to “take appropriate internal safeguards and comply with general due diligence obligations” under German law, Bloomberg reported. Suggesting that there may be far more behind the scenes, BaFin also appointed a monitor to assess the bank’s efforts, the first time BaFin has taken such action against a bank in relation to money laundering, the authority said in a statement on Monday.
In August, Deutsche Bank acknowledged that its anti-money laundering processes remained inefficient more than a year after it was fined almost $700 million for helping wealthy Russians move money out of the country. Deutsche Bank has also been mentioned frequently in the context of providing president Trump with loans for his various business ventures when few other banks were willing to lend to the now-US president.
Following the news, Deutsche Bank shares – which recently were lifted by news the largest German lender was looking to convert into a holding company in order to make itself easier to sell – dropped by 1%, but quickly recovered.
“We are in agreement with the BaFin that we have to improve these processes in the corporate and investment bank further,” Deutsche Bank said in response. “The bank will work together with the BaFin and the special representative KPMG to fulfill the regulatory requirements as soon as possible and within the given time frame.”