BaFin, the financial regulatory authority in Germany, has ordered Deutsche Bank to implement additional safeguards to prevent money laundering.
The regulator asked the lender to adopt appropriate internal safeguards and comply with due diligence obligations particularly regarding regular customer reviews.
The order also pertains to correspondent relationships and transaction monitoring.
Additionally, BaFin extended the placement of a special representative to monitor the implementation of the new directive.
Notably, the regulator appointed a special representative at Deutsche Bank in 2018 to monitor the progress on money-laundering control implementation.
The special monitor was appointed after Deutsche Bank was fined nearly $700m in 2017 for money laundering lapses.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
In a statement, Deutsche Bank said that it is improving the controls. The lender also acknowledged that more work is still to be done.
Reuters quoted the lender as saying: “The order is the result of a constructive supervisory dialogue with the BaFin and reflects that the bank continues to attach the highest priority to detecting and remedying possible weaknesses in control processes.
“We are working intensively to also comply with the new requirements within the given timeframe.”
This comes days after Deutsche Bank posted best quarterly group profits in seven years.
In the first quarter of 2021, profit before tax was € 1.6bn. The figure was €206m in the first quarter of 2020.