Deutsche Bank Fine $150m for Jeffrey Epstein Ties
New York state regulators said the bank had suffered
"significant compliance failures", processing hundreds of
transactions for the late financier.
Those
included payments to Russian models and $800,000 in "suspicious" cash
withdrawals.
Deutsche
said it "deeply" regretted its relationship with Epstein.
It
said it had spent almost $1bn to improve its training and controls and expand
its anti-financial crime team to more than 1,500 people.
"We
acknowledge our error of onboarding Epstein in 2013 and the weaknesses in our
processes, and have learnt from our mistakes and shortcomings," the bank
said in a statement. "Our reputation is our most valuable asset and we
deeply regret our association with Epstein."
New
York's Department of Financial Services said the bank, which worked with
Epstein from 2013 to 2018, helped him transfer millions of dollars, including
more than $7m to resolve legal issues and more than $2.6m in payments to women,
covering tuition, rent and other payments, among other transactions.
"Whether or to
what extent those payments or that cash was used by Mr Epstein to cover up old
crimes, to facilitate new ones, or for some other purpose are questions that must
be left to the criminal authorities, but the fact that they were suspicious
should have been obvious to bank personnel at various levels," the
regulator said.
"The
bank's failure to recognise this risk constitutes a major compliance
failure."
The
settlement also cited Deutsche's failures to monitor transactions with the
Danske Estonia and FBME Bank adequately, despite having identified risks
related to money-laundering at the two institutions.
The
fine is the first regulator action against a financial institution for its
dealings with Epstein, who died in prison on 10 August as he awaited, without
chance of bail, his trial on sex trafficking charges. His death was determined
to be a suicide.
But
Deutsche has faced multiple penalties for its compliance failures in recent
years, including over its failure to stop Russian money-laundering. Its
relationship with US President Donald Trump has also brought scrutiny.
In
an internal memo, Deutsche Bank chief executive Christian Sewing said it had
been a "critical mistake" to accept Epstein as a client and
acknowledged past lapses in the lender's oversight.
"We
all have to help ensure that this kind of thing does not happen again," he
said.
FROM .bbc.com/news/business
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