31 May 2017
Washington DC
Reporter: Drew Nicol
Deutsche Bank fined $41m for lack of anti-money laundering deficiencies
Deutsche Bank is facing a $41 million penalty and a consent cease and desist order from the US Federal Reserve for “significant deficiencies” in its anti-money laundering management.

The Federal Reserve discovered “unsafe and unsound practices at the firm's domestic banking operations”.

“Failures” were identified in Deutsche Bank's US banking operations to maintain an effective programme to comply with the Bank Secrecy Act and anti-money laundering laws.

The consent order requires Deutsche Bank to improve its senior management oversight and controls related to its US banking operations’ compliance with anti-money laundering laws.

Deficiencies in the bank’s transaction monitoring capabilities prevented it from properly assessing anti-money laundering risk for “billions of dollars in potentially suspicious transactions processed between 2011 and 2015” for some of Deutsche Bank’s European affiliates, which had failed to provide sufficiently accurate and complete information.

A Deutsche Bank spokesperson said: “We are committed to implementing every remediation measure referenced in the Fed’s order and to meeting their expectations.”

The bank was also issued with two fines in January over anti-money laundering failings.

The bank was ordered to pay a penalty of £163.1 million to the UK’s Financial Conduct Authority, the largest ever imposed by the regulator.

The New York State Department of Financial Services also received $425 million to settle the investigation into violations of the state’s anti-money laundering laws.

More regulation news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Former ITG sec lending trader banned for ADR misuse
23 June 2017 | Washington DC | Reporter: Drew Nicol
The charges follow ITG’s settlement in January when the broker-dealer agreed to pay more than $24.4 million over allegations of securities lending violations relating to the facilitation of naked short selling
Quantitative easing going nowhere for now
22 June 2017 | Berlin | Reporter: Mark Dugdale
The European Central Bank (ECB) left interest rates unchanged earlier in June and expects them “to remain at their present levels for an extended period of time, and well past the horizon of the net asset purchases”
Rule 15c3-3 reform offers equity collateral
22 June 2017 | Berlin | Reporter: Mark Dugdale
Potential reform of SEC Rule 15c3-3 is likely to change the US market, but the likes of the UK will see a realignment in trading rather than an out-and-out replacement
Fragmentation would weaken central clearing, says Mark Carney
20 June 2017 | London | Reporter: Mark Dugdale
In a speech at a breakfast event at Mansion House in London, Carney warned against carving up London’s clearing market once the UK leaves the EU
Broadridge takes on SFTR reporting requirements
20 June 2017 | New York | Reporter: Stephanie Palmer
Broadridge is addressing trade reporting requirements set to come in with the Securities Financing Transaction Regulation, launching a new solution spanning the entire reporting lifecycle
US Treasury takes aim at post-crisis regulation in Trump-ordered review
13 June 2017 | Washington DC | Reporter: Drew Nicol
The US Treasury has called on regulators to rationalise and improve the risk-based capital regime for the securities lending and derivatives exposures of US banks
EC proposes ‘two-tier’ CCP regulation
13 June 2017 | Brussels | Reporter: Mark Dugdale
EU legislators have proposed a massive overhaul of central counterparty supervision