LENDER TOLD TO IMPROVE CONTROLS
Latest reprimand sees monitor appointed to oversee Deutsche Bank’s efforts
THREE years ago, Deutsche Bank AG pledged to improve internal controls to avoid a repeat of fines that had eroded earnings and damaged trust. Yet from the United States to Germany, regulators keep spotlighting the lender’s failures.
In the latest reprimand, the German markets regulator on Monday said it ordered Deutsche Bank to improve money-laundering and terrorism-financing controls, and took the unprecedented step of appointing a monitor to oversee the efforts.
The move is a reminder of the scale of the challenges Deutsche Bank faces in improving compliance and oversight of its businesses after spending some US$17 billion (RM70.21 billion) on fines for misconduct and to resolve other legal claims over the past decade.
The Federal Financial Supervisory Authority’s (BaFin) action was prompted by Deutsche Bank’s insufficient efforts to improve its controls rather than a specific case of money laundering, according to two people familiar with the matter.
“We are in agreement with the BaFin that we have to improve these processes in the corporate and investment bank further,” said Deutsche Bank in a statement on Monday.
“The bank will work together with the BaFin and KPMG special representative to fulfil the regulatory requirements as soon as possible and within the given time frame.”