Deutsche Bank hasn’t done enough to prevent its accounts from being misused to launder money, circumvent international sanctions or even finance terrorism, the UK’s financial regulatory agency has found.
The British branch of Germany’s largest lender has “serious” and “systemic” shortcomings in its controls against those three kinds of illegal activity, the Financial Conduct Authority (FCA) said Monday, according to a letter seen a day earlier by the Financial Times newspaper.
“Our overall conclusion was that DB UK had serious AML (anti-money laundering), terrorist financing and sanctions failings which were systemic in nature,” the FT quoted the letter as saying.
The damning claim was made after the FCA spent a year conducting an in-depth evaluation of 14 large banks, including Deutsche. The regulators said the bank had also failed to impress due to missing documents, a lack of transaction monitoring and inappropriate pressure being put on employees to take on certain clients, the FT said.