Deutsche Bank to cough up $630m for failing to stop laundering of dodgy trades
New York/Frankfurt — Deutsche Bank agreed to pay $630m in fines to US and UK regulators for failing to stop $10bn in suspicious trades being laundered out of Russia, settling a second major legal case this month. The scheme involved mirror trades between the bank’s Moscow, London and New York offices from 2011 to 2015, in which it bought Russian blue-chip stocks in roubles for clients and soon after sold a matching quantity of these stocks at the same price through its London branch. "The offsetting trades here lacked economic purpose and could have been used to facilitate money laundering or enable other illicit conduct," the New York Department of Financial Services said in fining Deutsche Bank $425m. "The bank missed numerous opportunities to detect, investigate and stop the scheme due to extensive compliance failures, allowing the scheme to continue for years." Britain’s Financial Conduct Authority fined Deutsche Bank £163m for inadequate controls against money laundering from 2...
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