Deutsche Bank fined by regulators for money laundering

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Deutsche Bank has been fined $630m (£504m) by US and UK regulators for a Russian money laundering plan.

Under the scheme, $10bn was moved illegally 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 which had gone on for years.

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 found that so called “mirror” trades had been carried out through the bank between 2011 and 2015.

Clients would purchase stocks in rubles in Moscow before their counterparts sold the same stock at the same price through the bank’s London branch.

“By converting rubles into dollars through security trades that had no discernible economic purpose, the scheme was a means for bad actors within a financial institution to achieve improper ends while evading compliance with applicable laws,” according to the legal document detailing the settlement with DFS.

In addition to paying the settlement, Deutsche Bank also will be required to hire an outside monitor to review its internal compliance measures.

It comes less than two weeks after the German bank finalised a $7.2bn settlement with the US Justice Department over its role in the 2008 financial crisis.


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