Deutsche Bank Fined $630m over Russia Money Laundering Claims
Deutsche Bank has been fined more than $ 630 million to $ 10 million dollars of the crimes of Russian money laundering and the British financial system exposed to the risk of financial crimes.
The Financial Conduct Authority has imposed its highest fine ever - £ 163m - in case of a money laundering offense at the largest bank in Germany, which said it missed several opportunities to curb the activities of its Russia operations because of The weakness of systems to detect financial crimes between 2012 and 2015.
The US regulator, the New York Department of Financial Services, has also imposed a $ 425 million fine on the bank, listing Deutsche's problems including a compliance officer who said he had to "beg, borrow, and Steal "to receive the appropriate resources. A monitor was imposed inside the bank for two years.
The latest came with regulators posing as the CEO of Deutsche John Cryan, trying to clean up the bank that concluded last month an additional $ 7.2 billion settlement with the United States Department of Justice for a decade.
The German bank - which has been subject to stock price turmoil for the past 12 months, over its ability to pay the fines - admitted that investigations of its Russian operations in the so-called "mirror" had not yet ended. He said he was "cooperating with other regulators and law enforcement authorities." The Justice Department has reported being among them.
Karl von Rohr, head of Deutsche sent a memorandum to staff about the changes in business and the closure of Russian ground operations last year.
"We deeply regret the role of the bank in these issues," he said, adding that the number of employees in the fight against crime had increased by 30% in 2016 with plans to increase to 50% in additional 2017.
The FCA said Deutsche's anti-money laundering (AML) controls were not strong enough to prevent unidentified customers from transferring about $ 10 billion of Russian dollars to offshore bank accounts "in a highly evocative financial offense ". The money is transferred through Deutsche Bank in the UK, to bank accounts abroad, including Cyprus, Estonia and Latvia, he told the FCA.
Mark Steward, director of market surveillance and execution at FCA, said: "Financial crime is a threat to the UK financial system. Deutsche Bank was forced to establish and maintain a control framework for effective LMA. By failing to do so, Deutsche Bank started at risk of being used to facilitate financial crime and exposes the UK to the risk of financial crimes.
"The size of the fine reflects the seriousness of the weaknesses of Deutsche Bank." We have repeatedly pointed out to companies how to comply with our AML requirements and Deutsche Bank failures are simply unacceptable. See back to their own AML procedures to ensure that they do not face similar actions.
The penalties refer to the inability of the bank to obtain information on customers involved in mirror transactions - which "reflect" and do not have an economic purpose - which allowed the subsidiary in Russia (Moscow DB) Deutsche Bank to execute more than 2400 Pairs Between April 2012 and October 2014.
The FCA said that the purpose of mirror operations of $ 6 billion were the conversion of rubles to US dollars and the "hidden funds transfer of Russia, which is very suggestive of financial crime."
Regulators found nearly $ 3 billion in 3,400 suspected "unilateral operations." CFA believes that some if not all of them formed a mirror side trades and were often carried out by the same clients involved in the trading mirror.
"The mirror Russian trading system took place while the bank was on clear notice of serious and widespread compliance problems dating back a decade. Compensatory transactions here had an economic purpose and could have been used to facilitate the washing of Money or allow other illegal behavior, and today's action sends a clear message that DFS will not tolerate such behavior, "said Maria Vullo, Superintendent of Financial Services for the New Year.
FCA describes Deutsche Bank as being unusually cooperative and
The Financial Conduct Authority has imposed its highest fine ever - £ 163m - in case of a money laundering offense at the largest bank in Germany, which said it missed several opportunities to curb the activities of its Russia operations because of The weakness of systems to detect financial crimes between 2012 and 2015.
The US regulator, the New York Department of Financial Services, has also imposed a $ 425 million fine on the bank, listing Deutsche's problems including a compliance officer who said he had to "beg, borrow, and Steal "to receive the appropriate resources. A monitor was imposed inside the bank for two years.
The latest came with regulators posing as the CEO of Deutsche John Cryan, trying to clean up the bank that concluded last month an additional $ 7.2 billion settlement with the United States Department of Justice for a decade.
The German bank - which has been subject to stock price turmoil for the past 12 months, over its ability to pay the fines - admitted that investigations of its Russian operations in the so-called "mirror" had not yet ended. He said he was "cooperating with other regulators and law enforcement authorities." The Justice Department has reported being among them.
Karl von Rohr, head of Deutsche sent a memorandum to staff about the changes in business and the closure of Russian ground operations last year.
"We deeply regret the role of the bank in these issues," he said, adding that the number of employees in the fight against crime had increased by 30% in 2016 with plans to increase to 50% in additional 2017.
The FCA said Deutsche's anti-money laundering (AML) controls were not strong enough to prevent unidentified customers from transferring about $ 10 billion of Russian dollars to offshore bank accounts "in a highly evocative financial offense ". The money is transferred through Deutsche Bank in the UK, to bank accounts abroad, including Cyprus, Estonia and Latvia, he told the FCA.
Mark Steward, director of market surveillance and execution at FCA, said: "Financial crime is a threat to the UK financial system. Deutsche Bank was forced to establish and maintain a control framework for effective LMA. By failing to do so, Deutsche Bank started at risk of being used to facilitate financial crime and exposes the UK to the risk of financial crimes.
"The size of the fine reflects the seriousness of the weaknesses of Deutsche Bank." We have repeatedly pointed out to companies how to comply with our AML requirements and Deutsche Bank failures are simply unacceptable. See back to their own AML procedures to ensure that they do not face similar actions.
The penalties refer to the inability of the bank to obtain information on customers involved in mirror transactions - which "reflect" and do not have an economic purpose - which allowed the subsidiary in Russia (Moscow DB) Deutsche Bank to execute more than 2400 Pairs Between April 2012 and October 2014.
The FCA said that the purpose of mirror operations of $ 6 billion were the conversion of rubles to US dollars and the "hidden funds transfer of Russia, which is very suggestive of financial crime."
Regulators found nearly $ 3 billion in 3,400 suspected "unilateral operations." CFA believes that some if not all of them formed a mirror side trades and were often carried out by the same clients involved in the trading mirror.
"The mirror Russian trading system took place while the bank was on clear notice of serious and widespread compliance problems dating back a decade. Compensatory transactions here had an economic purpose and could have been used to facilitate the washing of Money or allow other illegal behavior, and today's action sends a clear message that DFS will not tolerate such behavior, "said Maria Vullo, Superintendent of Financial Services for the New Year.
FCA describes Deutsche Bank as being unusually cooperative and
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