Deutsche Bank faces fines after U.S Fed warned it of weaknesses of anti-money laundering controls, according to the Wall Street Journal. Fed told Deutsche Bank that it is backsliding despite the lender spending heavily to address the control shortcomings.
The Federal Reserve has accused Deutsche Bank of backsliding and termed some of the problems in anti-money laundering controls as needing immediate attention.
Deutsche Bank has defended itself saying it has strengthened its systems and complied with the regulation.
The Fed’s warning comes one year after the U.S regulator issued an admonishment over Deutsche Bank’s money laundering controls.
Deutsche Bank was also fined $41 million in 2017 for failing to put in place effective money laundering controls.
Deutsche Bank has found itself in the cold over loose controls, with German’s financial regulator also requiring it to strengthen the internal controls over money laundering.
The German regulator is also closely monitored by New York’s Department of Financial Services over financial dealings and lender’s activities in Russia.
Deutsche Bank is currently declining. DBK is down 1.65%
