Federal Reserve Board Imposes Enforcement Actions on Deutsche Bank AG and U.S. Affiliates for Sanctions Compliance and Anti-Money Laundering Violations
The Federal Reserve Board has taken decisive action against Deutsche Bank AG, its New York branch, and other U.S. affiliates by announcing two enforcement actions. These actions come as a response to unsafe and unsound practices, as well as violations of the Board’s previous consent orders with Deutsche Bank in 2015 and 2017, specifically concerning sanctions compliance and anti-money laundering controls.
In the first enforcement action, the Board issued a consent order along with a substantial $186 million fine. The Board found that Deutsche Bank had made insufficient progress in remedying the issues highlighted in the 2015 and 2017 consent orders. Additionally, the bank was found to have deficient anti-money laundering internal controls and governance processes related to its prior relationship with the Estonian branch of Danske Bank. The consent order now requires Deutsche Bank to prioritize the completion of critical requirements outlined in the Board’s previous orders.
In a separate development, the Board also announced a Written Agreement to address broader deficiencies pertaining to Deutsche Bank’s governance, risk management, and controls. This action highlights the importance of establishing robust governance mechanisms and risk management practices within financial institutions.
The Federal Reserve Board’s enforcement actions aim to ensure that financial institutions operate in a safe and compliant manner, safeguarding the integrity of the financial system. By imposing these measures, the Board emphasizes the significance of sanctions compliance and anti-money laundering controls as critical components of the banking industry.
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