Germany orders Deutsche Bank to do more to prevent money laundering
04 May 2021

The German financial regulator BaFin has ordered Deutsche Bank to enact further safeguards to prevent money laundering, BaFin said on Friday, a blow to the nation’s largest lender as it tries to repair its reputation.

In 2018, BaFin took the extraordinary step of installing the auditor KPMG as a special monitor at Deutsche to oversee progress on money-laundering controls.

It was the first time that the German regulator had made such an appointment and followed a series of money laundering lapses.

Now, BaFin is expanding KPMG’s mandate.

BaFin said in a brief statement that it wanted improved controls particularly regarding “regular customer reviews,” applying also to correspondent banking and the monitoring of transactions.

The news comes on the heels of a good week for Deutsche. It posted its best quarterly profit in seven years – following years of losses – and its share price surged to the highest level in three years.

Deutsche Bank said in a statement that it was improving its controls but “we are also aware that there is still work to be done.”

“The order is the result of a constructive supervisory dialogue with the BaFin and reflects that the bank continues to attach the highest priority to detecting and remedying possible weaknesses in control processes,” Deutsche Bank said.

“We are working intensively to also comply with the new requirements within the given timeframe,” Deutsche said.

By Tom Sims, Patricia Uhlig and Hans Seidenstuecker, Reuters, 30 April 2021

Read more at Reuters

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