Germany’s BaFin warns Deutsche Bank of potential fines if it doesn’t improve money laundering controls

The Federal Financial Supervisory Authority of Germany, BaFin, has “threatened to impose penalty payments” on Deutsche Bank, the country’s largest lender, if it doesn’t fix what it refers to as “defects” concerning its money laundering controls.

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BaFin extends monitoring of Deutsche Bank
The regulator has extended the stay of its special representative at Deutsche Bank until 30 October 2024 to report on and assess the progress of the bank’s implementation of safeguards against money laundering and terrorist financing. The representative was first instated by BaFin in 2018.

BaFin says: “On November 21, 2023, BaFin ordered Deutsche Bank AG to take specific measures to improve data processing systems for monitoring transactions to prevent money laundering and terrorist financing. The decision has been legally binding since December 29, 2023.

“BaFin has threatened to impose penalty payments in the event of non-fulfillment.”

On the regulator’s order, Deutsche Bank says: “BaFin ordered the bank to take specific measures to improve data processing systems for transaction monitoring. There are no new findings in the order, which set a binding timeframe for the implementation of measures that were already agreed.

“We will continue to fully cooperate with BaFin and invest the necessary resources to implement these measures within the deadline.”

The bank adds: “As announced by BaFin, the special representative will monitor the implementation progress of the agreed measures for the improvement of our transaction monitoring systems, which we already have partially completed.”

Deutsche Bank is currently pursuing a €2.5 billion cost-cutting drive, which will see around 3,500 jobs cut over the next two years.

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