Deutsche Bank Has Systemic Money Laundering, Terrorist Financing And Sanctions Problems: UK Regulator

Tyler Durden's picture

Just two days after Deutsche Bank fired the head of its "integrity committee", Georg Thoma who had been originally tasked with clearing up the bank's past scandals, because according to DB's vice chairman Alfred Herling, Thoma had been "overzealous" and "goes too far when he demands ever wider investigations and more and more lawyers come marching up", today the UK financial watchdog agency FCA announced that Germany's biggest bank has "serious" and "systemic" failings in its controls against money laundering, terrorist financing and sanctions, the Financial Times reported.

The Financial Conduct Authority (FCA), has now ordered a separate independent review, the FT reported the letter as saying. The FCA declined to comment.

In other words instad of firing it "Chief Ethics Officer" (sic), Deutsche should have ideally hired a few more because as a result of this latest probe it is most likely looking at billions more in settlement charges over the next 6 - 12 months.

"Our overall conclusion was that Deutsche Bank UK had serious AML (anti-money laundering), terrorist financing and sanctions failings which were systemic in nature," the FCA letter, dated March 2, reportedly said.

"Effective senior management engagement and leadership on financial crime had been lacking for a considerable period of time." And where there is effective senior management, the board makes sure to get rid of said management, because if it actually followed the law how could this megabank ever make money in Europe's monetary twilight zone.

Meanwhile, Deutsche Bank said it is cooperating with regulators to fundamentally reform its anti-financial crime program.

"We understand the importance of this issue and are committed to and engaged in fixing it", a company spokesman said in an emailed statement on Sunday.

This is only the latest brush-up between DB and the FCA: in late 2014, the UK regulator put Deutsche Bank's London office under enhanced supervision owing to concern about the bank's governance and controls. Enhanced supervision procedures are normally kept private and can follow fines. Following its review, Reuters reports, the FCA ordered a so-called skilled persons report - also called a Section 166 report - to assess remedial work Deutsche must now carry out.

Deutsche Bank's new chief executive, John Cryan, who took over in July, has embarked on a deep restructuring of the bank, which includes an overhaul of governance procedures.

Cryan announced in November a review of its know-your-client mechanisms and its vetting procedures when taking on new clients. It has also suspended taking on new customers from 109 countries which it has defined as high risk, compared with 30 countries it had earlier classified as too risky.

The report on the FCA letter comes not only days after the abovementioned acrimonious public squabble among members of Deutsche Bank's supervisory board and the ejection of the man heading the supervisory board’s Integrity Committee, but also just weeks after Deutsche became the first bank to settle and admit to charges that it had manipulated the gold market, and had also agreed to expose other gold manipulation cartel members.

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bugs_'s picture

Among other things.

knukles's picture

Seriously  So what else is new?
Anything illegal that involves money ultimately flows thorough the banking system.


You know .... the well regulated, upstanding global multinational many layers of oversight, compliance and audited banking system.

"What, me worry?"
    - A E Newman, chair-fuehrer, Deutsche Bank

freewolf7's picture

There should probably be a fine, but incarcerations would be excessive.

Pinto Currency's picture


UK Regulator: "There - that will teach them for squealing on the other banks rigging gold and silver on our paper fraud LBMA."

philipat's picture

That focus on Integrity didn't last very long? Presumably the new CEO has come to understand that you can't make money operating as an honest Bank when in competition with the likes of HSBC and JPM?

zeropain's picture

Just put it out of its missery

Yen Cross's picture

  Would the chair-fuehrer be Male or Female?

  This is the assclown puppet you want to keep yuour eyes on> Jens Weidmann


 Jens Weidmann (born 20 April 1968) is a German economist and president of the Deutsche Bundesbank. Before assuming the top Bundesbank position in 2011, from February 2006, he served as Head of Division IV (Economic and Financial Policy) in the Federal Chancellery.

ZH Snob's picture

more german change.  forget about GB leaving the EU, what is coming is a nationalist takeover of germany and a subsequent departure of both NATO and the EU.

Slarti Bartfast's picture

Don't push them too hard. There's that little unstable pile of derivatives, $75,000,000,000,000 tall that might tip over.

WTFUD's picture

You know they're a wrong un when the UK of all people rubbish your integrity.

tarabel's picture



Valid point. Herr Kettle, you are schwarz.

knukles's picture

Then again, right and wrong from the land or Crossdressing 101, A Level Pedophilia and Advanced Buggery

38BWD22's picture



Douche Bank seems to be doing everything they can to screw the system.  Let them fail.

The Central Banksters can just print up the CA$H to cover depositors.  

But, let the chips fall where they may on the derivative holders.

seek's picture

They've been on the brink for years.

I think the issue is that they're willing to bring others down with them if the rest of the gang doesn't support them. I don't think the banksters factored in someone going all mutually assurred destruction on them from their own team, so you're seeing them use regulatory authorities to slowly separate DB from the herd before they put it down to minimize the collateral damage.

If DB were smart, they'd hit the explodey button ASAP. Closer they are to the other banks the more likely they'll get supporting intervention, and conversely the more they get pushed out the system the less likely help will arrive.

38BWD22's picture



Mmm.  And a lot going on now too.  Puerto Rico is going to default.  German Justice Minister chased out.

Lots & lots of problems right now.   Maybe you're right: push the button now and get 'er started.

BurningFuld's picture

Wait just a minute. They can always fall back on their Greek Bonds.

StychoKiller's picture

I don't care who ya'are, that's funny right there! :>D

Atomizer's picture

RICO Laws are seldom used in the United States of America. The only way to take out a banker is by hanging from a rope. Sniper rifle is plan B. 

Seek_Truth's picture

The most obvious application of RICO laws would be the US gubmint itself.

So much for "justice".


Wow72's picture

They used FIRREA to sue BofA after bailing them out which technically was illegal under the bailout laws, but they circumvented them for 16 billion. So not really.  They do what ever they want in a corrupt system.  Depends on who, why and how much is involved.

adanata's picture


Remember who runs the UK, FCA and the BOE...  the Barons are taking down Douchebank which has already dumped over two trillion of their three trillion in fradulent OTC derivatives in Wall Street banks. This process is ongoing; i.e. Wells Fargo wants MOAR derivatives. Consider that neat "law" whereby the U.S. taxpayer is on the hook for those losses. Can you say bank holiday?

tarabel's picture



Last week I made two observations:

1) Because DoofusBank was squawking so much about how regulators were killing them, I supposed that it was in real trouble. Publicly biting the hand that feeds them is never a good idea.

2) The sudden spate of international emergency financial meetings could quite possibly be connected to the likelihood of its abrupt failure and what sort of methods would be necessary to manage its book.

Terrible, terrible trouble

And that starts with T

And that rhymes with D

And that stands for fucking Nazi bankers who are counting on their too big to fail/jail status when they have too obviously gotten too big to bail.

Oh, my friends, we got trouble

Terrible, terrible trouble

darteaus's picture

"...Germany's biggest bank has "serious" and "systemic" failings in its controls against money laundering, terrorist financing and sanctions..."

Seems like thinkgs haven't changes since the '30s then.

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) navy62802 May 1, 2016 7:51 PM

Damn Deutsche should have stuck to sell US Real Estate, there you can launder money with no problems.  All Cash Bids Welcome, no questions asked (not even your name)

o r c k's picture

The criminal manipulators are back and trying to bury the PM's. Desperation sure, but it's really holding things back.

holdbuysell's picture

Not only par for the course with HSBC already busted for laundering money for the drug trade, but how does a cash ban prevent banks from behaving badly? Spoiler alert: it doesn't.

VWAndy's picture

 Its too bad they dont have any Oathkeepers around.

carneades_jazz_hands's picture

How rich, the UK finding fault with Deutsche as opposed to.....


...or how about JPM and B of A?!?!


wow thats crazy's picture

it might be more of a threat to Germany if anything?

mototard's picture

In other news, nikkei 225 drops over 4% on the open.  Recovering a bit now.

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) mototard May 1, 2016 7:54 PM

Green by US Open

Tinky's picture


I don't have a clock in my bedroom, and yet it's becoming harder and harder to get a good night's sleep...

tick-tock, Tick-Tock, TICK-TOCK...

wow thats crazy's picture

This is Hilarious, The UK ruled by Bankers, pedophiles and war criminals calling the kettle black!!

pliny the longer's picture

money laundering and terrorist financing:  is this good or bad?  i''m confused

BurningFuld's picture

If you are a Banker it is good.

If you are a tax payer it is not so good.

cognitive dissident's picture

DBAG... I am starting to question my own Kraut heritage now. Shit.

peddling-fiction's picture

If you don´t have grabby tribe blood in you, you probably should not question your heritage.

If you do, repent your sins and convert. Welcome to Christianity.

venturen's picture

This may be the biggest Lehman since Lehman

Arrowshot's picture

Ahhh, just after theatening to name names in PM manipulation. Will wonder never cease.

o r c k's picture

the manipulation story was a simple distraction. Right now the manipulators are going hog wild keeping the PM's below 1300 and 18. I know I'm in an embarrassing Banana Republic when I can look at a chart and watch major crimes being committed "live from New York !!" The  .Gov employees we hired to arrest this slime are just players in the organized crime territory  known as the American Toilet--Flush With Payola.  What a stinking disgrace of a society.

CHoward's picture

I think fairly soon we'll have to start saying "since Douche Bank".


Out with the old, in with the new.  Sorry Lehman, you're so yesterday. 

Kefeer's picture

I wonder if the US is one of those countries?  Probably should be and rather than countries it should be organization based.  For example, doing business with Goldman Sachs or JP Morgan...blah blah and blah.

e_goldstein's picture

You know what the sad part about this story is?

No bankers committed suicide... yet.