Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Deutsche Bank staffers cleared but bank fined in money laundering case

Published 2019-12-06, 07:14 p/m
Updated 2019-12-06, 07:14 p/m
© Reuters. FILE PHOTO: A statue is pictured next to the logo of Germany's Deutsche Bank in Frankfurt

© Reuters. FILE PHOTO: A statue is pictured next to the logo of Germany's Deutsche Bank in Frankfurt

BERLIN (Reuters) - Frankfurt prosecutors have dropped an investigation into two Deutsche Bank (DE:DBKGn) employees accused of aiding tax evasion through a former Virgin Islands unit, although they have fined the lender for compliance lapses.

In a two-day raid a year ago, 170 police officers searched Deutsche Bank's headquarters in Frankfurt, hitting its share price just as management was battling with losses and a string of other financial and regulatory scandals.

Sources close to the investigation said as recently as July that prosecutors were set to escalate the investigation, planning raids on wealthy former clients after searching the homes of eight people in May.

Deutsche Bank said on Friday, however, that the Frankfurt prosecutor's office had now closed the case due to a lack of suspicion. It was hit with 15 million euros ($16.5 million) in fines and forfeits to make amends for the shortcomings in its compliance setup.

“With the closure of these proceedings it is clear that the prosecutors have not found any instances of criminal misconduct on the part of Deutsche Bank employees following the raid of our Frankfurt office in November 2018," Deutsche Bank spokesman Joerg Eigendorf said in a statement.

"The investigation that has now been closed due to lack of sufficient suspicion had a heavy impact on Deutsche Bank last year,” he added. “It is true that the bank had weaknesses in its control environment in the past. We identified these weaknesses and we have addressed them in a disciplined manner.”

The proceedings were linked to German client interactions with offshore entities set up by the bank's Virgin Islands subsidiary Regula Ltd. The subsidiary was sold by Deutsche Bank in March 2018.

In a separate statement, the prosecutor's office said the fines were imposed over the failure to promptly report suspected money laundering related to Regula; inadequate high-level oversight and understaffing of the bank's anti-money-laundering team from 2015 until early 2018.

© Reuters. FILE PHOTO: A statue is pictured next to the logo of Germany's Deutsche Bank in Frankfurt

Even though it dropped its investigation into the two Deutsche Bank staffers, the prosecutor's office said it would continue to investigate German customers of Regula that it suspects of tax evasion.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.