Europe

EUROPE: Deutsche Bank acknowledges lapse in checks on money laundering.


By added on 01/10/2019

As published on nytimes.com, Monday 10th June, 2019.

 

Deutsche Bank on Monday acknowledged a lapse in its money laundering controls, underlining the bank’s continuing struggle to move beyond a series of scandals that have helped push its stock price to a record low.

An internal audit uncovered deficiencies in the way that the bank processed checks on behalf of clients, Deutsche Bank said in a statement. The audit, which examined the bank’s operations in Britain, did not find any cases of money laundering or breaches of international sanctions that occurred because of the lapses, the bank said.

Deutsche Bank issued the statement after The Financial Times reported that checks processed on behalf of three large corporate clients were supposed to be screened by two employees but instead received only a cursory review by one worker.

The bank, which did not deny the report, said it was working to improve its technology to prevent financial crimes. “We continue to invest substantially” in better controls, it said.

Deutsche Bank has repeatedly come under fire for not doing enough to avoid being a conduit for dirty money, and has had a series of embarrassing disclosures about sloppy screening procedures.

Last month, the bank said it had found flaws in software used for years to identify cases of possible money laundering. The bank said no suspicious transactions had slipped through as a result.

In November, German law enforcement authorities searched Deutsche Bank headquarters in Frankfurt as part of an investigation into whether bank employees had helped customers use offshore tax havens to transfer money obtained illegally.

Christian Sewing, the Deutsche Bank chief executive, told shareholders last month that the bank had not found evidence of wrongdoing by its employees.