Fed fines Deutsche Bank $186 million

The U.S. Federal Reserve (Fed) has imposed a $186 million fine on Deutsche Bank and its U.S. subsidiaries for failing to take adequate measures to prevent money laundering. The U.S. Federal Reserve (Fed) announced that the bank was fined $186 million for “unsafe and unsound practices” and violations of agreements made with Deutsche Bank in 2015 and 2017 regarding sanctions compliance and anti-money laundering controls. The statement indicated that Deutsche Bank had not made sufficient progress under these agreements and remained weak in its internal anti-money laundering controls and governance processes regarding its previous relationship with Danske Bank’s Estonian branch. The statement emphasized that Deutsche Bank should prioritize addressing these issues, noting that if the unsafe and unsound practices or violations were not corrected, the bank could face “additional and increased” penalties. The statement reported that Deutsche Bank had been instructed to address other general deficiencies in its governance, risk management, and controls. Deutsche Bank said in a statement that it was committed to addressing the deficiencies identified by the Fed "in the near future" and added: "Given the momentum we have provided over the last 2 years, we believe we are well positioned to meet our regulators' expectations."