Deutsche Bank has been fined $630m (£504m) by US and UK regulators in connection with a Russian money laundering plan. Authorities in US and UK issue fine after saying bank used offices in Moscow and London to move $10bn out of country.
Under the scheme, clients illegally moved $10bn out of Russia via shares bought and sold through the bank’s Moscow, London and New York offices.
Authorities said Deutsche had missed “numerous opportunities” to detect, investigate and stop the scheme. Deutsche Bank said it was co-operating with regulators. It also said it had put aside money to cover the cost of the settlement.
During the investigation, New York authorities and Britain’s Financial Conduct Authority (FCA) found that so called “mirror” trades had been carried out through the bank between 2011 and 2015. Clients would purchase stocks in roubles in Moscow before their counterparts sold the same stock at the same price through the bank’s London branch.
The Financial Conduct Authority imposed its largest ever fine – £163m – for potential money laundering offences on Germany’s biggest bank, which it said had missed several opportunities to clamp down on the activities of its Russian operations as a result of weak systems to detect financial crime between 2012 and 2015.
The US regulator, the New York Department of Financial Services, also fined the bank $425m as it listed problems at Deutsche including one senior compliance officer stating he had to “beg, borrow, and steal” to receive appropriate resources to combat money laundering. It has imposed a monitor inside the bank for two years.