The Federal Financial Supervisory Authority (BaFin), Germany’s financial watchdog, has instructed Deutsche Bank to bolster its defences against money laundering.

The order comes at a time when most of the European regulators are increasing their supervision of the banks following multiple scandals.

In a statement, BaFin said that it has ordered Deutsche Bank to implement necessary safeguards and comply with general due diligence obligations on the basis of section 51 (2) sentence 1 of the German Money Laundering Act.

The regulatory authority has also appointed KPMG as a special representative for three years to monitor the implementation, reported Reuters.

Deutsche Bank also said to have agreed to strengthen its client identification processes to mitigate the risks of money laundering.

“We have the strong commitment to operate within regulatory compliant practices for the identification of our clients,” Reuters quoted Deutsche Bank saying in a statement.

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However, BaFin and Deutsche Bank did not elaborate on the new measures that would be implemented.

In 2017, Deutsche Bank was penalised nearly $700m for inadequate anti-money laundering measures.

Last month, it was reported that Deutsche Bank is planning to axe around 1,000 jobs at the headquarters of its retail division.

The proposed job-cuts, which are yet to be finalised, is aimed at eliminating duplication in back- and mid-office jobs.