Deutsche Bank under investigation for compliance with money laundering laws

  • Deutsche Bank under investigation for compliance with money laundering laws

Deutsche Bank under investigation for compliance with money laundering laws

Investigators are looking into why the bank didn't file alerts, known as Suspicious Activity Reports, even though compliance employees had prepared them, according to the report.

Several other banks are also said to be under investigation as part of a larger probe into the way illicit funds pass through the financial system.

The transactions were notable because they were linked to companies controlled by U.S. President Donald Trump and his son-in-law and advisor Jared Kushner, according to the report. McFadden told The New York Times she flagged a number of suspicious money transfers between Kushner Companies LLC and Russians during the 2016 USA presidential election.

CREW executive director Noah Bookbinder said in a statement said that "questions about transactions between President Trump and foreign actors whose conduct seemingly warranted suspicious activity reports, potentially facilitated by Deutsche Bank, harms the public legitimacy of the institution of the presidency itself". A U.S. Department of Justice investigation is still ongoing. A spokesman for Deutsche Bank declined to comment to Newsweek on Wednesday afternoon.

This criminal investigation is separate from the Congressional investigations into Trump's financial ties to Russian Federation during the 2016 election.

A Deutsche Bank employee alleged that the bank was applying heightened scrutiny to dozens of accounts associated with politically-exposed people that could include Trump and Kushner. Also puzzling is its continuing willingness to do business with Trump when most banks refused because of his relentless financial troubles. After a judge struck down the request, the president's lawyers were expected to appeal.

Libowitz added that Deutsche Bank is "refusing to act on whistle blower concerns regarding both these issues, and thus two high-risk situations are going unaddressed".

In early 2017, federal and state regulators in the United States and British authorities imposed hundreds of millions of dollars in civil penalties on Deutsche Bank for that misconduct, but prosecutors never brought a criminal case against the bank. He said handed Federal Bureau of Investigation agents internal bank documents and other items from his father's personal email.

Numerous bank's anti-money-laundering operations are based in Jacksonville, Florida, where Ms McFadden was one of hundreds of employees vetting transactions that computer systems flagged as potentially suspicious.

Ms McFadden told The Times that she had warned in summer 2016 about transactions by the Kushner Cos involving money being sent to Russian individuals. The foundation was organized to donate proceeds from Trump's book, "Trump: The Art of the Deal", to charitable causes. The company said any allegations regarding its relationship with Deutsche Bank that involved money laundering were false. A Trump Organization spokeswoman said that she had no knowledge of any Deutsche Bank transactions being flagged.