Deutsche Bank Launches Client-Data Compliance Probe after Layoffs: FT
30 Jul 2019

Deutsche Bank is reviewing whether it allowed confidential client data to be compromised by former employees who were laid off earlier this month, the Financial Times reported Sunday.

Approximately 50 former traders from Deutsche’s London and New York offices were able to access the bank’s systems and their emails in the weeks that followed the lender’s first round of layoffs, the newspaper reported. One individual formerly involved in equity sales sent around 450 messages via remote access after she was laid off, according to the report.

The internal probe, lead by the bank’s global compliance chief Jeremy Kirk, will seek to determine whether ex-bankers accessed price-sensitive data and whether current employees aided their former colleagues in obtaining such information, according to the report.

“Access to trading systems was turned off immediately for employees being put at risk of redundancy,” the bank told the FT. “A small number of employees continued to have access to their work emails through personal devices for a limited period.

“We have reviewed nearly all emails sent and have so far found no evidence of any price sensitive information being communicated or of any other wrongdoing,” the bank told the news outlet.

The troubled lender is in the process of eliminating some 18,000 positions, or roughly a fifth of its workforce, as it attempts to shed unwanted assets and overhaul its compliance efforts, FT said. As part of that effort, Deutsche is investing €4 billion in its internal controls and combining its anti-money laundering, risk and compliance functions, the newspaper said.

Deutsche Bank has, in recent months, been implicated in a series of financial crime scandals, including over its alleged role in handling money embezzled from the Malaysia state-owned investment fund 1MDB and over its purported failure to file suspicious activity reports linked to US President Donald Trump and his son-in-law Jared Kushner.

The bank, which has recently acknowledged shortcomings in its AML systems, has also faced scrutiny over its client monitoring as German authorities have escalated an investigation into tax evasion and money laundering by Deutsche customers.

Read more:

Deutsche Warns Corporate Clients of Potential Account Closures: Report

Deutsche Bank’s AML Team Sought SARs on Trump, Kushner: NYT

Prosecutors suspect 70 Deutsche Bank managers in dividend tax probe: paper

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