The US Federal Reserve (Fed) fined Deutsche Bank and its US subsidiaries $186 million for failing to take adequate action to prevent money laundering.
The Federal Reserve has fined the bank $186 million for breaching agreements with Deutsche Bank in 2015 and 2017 on “unsafe and unsound practices” and sanctions compliance and anti-money laundering controls.
In the statement, it was stated that Deutsche Bank did not make sufficient progress under the said agreements and remained weak in its internal controls and governance processes regarding anti-money laundering related to its previous relationship with the Estonian branch of Danske Bank.
Emphasizing that Deutsche Bank should prioritize addressing these issues, it was noted that the bank could face “additional and increased” penalties if unsafe and unsound practices or violations are not corrected.
Deutsche Bank has been instructed to address other general deficiencies in its governance, risk management and controls, the statement said.
Deutsche Bank’s statement also stated that the Bank is determined to address the shortcomings identified by the Fed “soon”.