Deutsche Bank in internal investigation of suspicious transactions of $10 billion in the Moscow representative office of the Bank revealed a “systemic” failure in the internal control intended for prevention of money laundering, reported Bloomberg, which reviewed the report of the Deutsche Bank about the audit. Deutsche Bank calls the critical issues identified and notes that they could afford to withdraw from Russia $10 billion in 2012-2014 through the “scheme alleged money laundering,” the Agency said.
During check it was established that in January 2014, Hellenic Bank Cyprus has written to the London office of Deutsche Bank a “major suspicious transactions” through the account of the company “Argonot”, which, according to the Agency citing data from the British registry, is registered in the Commonwealth of Dominica companies. Hellenic Bank was sent to London at least two more reminders, but received a reply only in March. At the request of Hellenic Bank was responsible to the Department for financial markets of the Moscow office of Deutsche Bank, who vouched for the customers and operations, according to Bloomberg.
The audit showed that Deutsche Bank had ignored and other signals of suspicious transactions. In particular, in mid-2014 in Moscow Deutsche Bank passed the audit, the results of which the independent auditor has warned of identified “serious shortcomings” in the system of vetting clients. In addition, in the Moscow office found the alleged “mirror trades”, who conducted a small Russian broker in Moscow and a company registered in the British virgin Islands in London, the news Agency reports with reference to the report of the Bank. In late August, the Moscow management of Deutsche Bank decided to terminate the cooperation with the two companies and suggested that London colleagues to conduct a full-scale test, which could identify other suspicious transactions, says the Agency. The London office of Deutsche Bank on the proposal did not react to the report.
Deutsche Bank has organized an internal investigation only at the beginning of 2015, when the operations in the office became interested in the Russian authorities. Less than two months the auditors have identified more than 2 thousand transactions, during which were not complied with internal control procedures to prevent money laundering.
Report of the audit was prepared in the autumn and handed over to the regulators, told the Agency the representative of Deutsche Bank Renee Calabro. She noted that the Bank took disciplinary action against individuals and works to address identified deficiencies. Hellenic Bank declined to comment. To contact representatives “Bargainista” failed, according to Bloomberg.
That Deutsche Bank conducts internal audit at the Moscow office, it became known in the summer of 2015. Bloomberg with reference to sources wrote that validated suspicions about possible money laundering by Russian customers $6 billion In December 2015 by the source Agency reported that Deutsche Bank has identified suspicious transaction volume of $4 billion.
In December 2015, the Bank of Russia has fined Deutsche Bank AG on 300 thousand roubles for infringement of rules of internal control, made Moscow office. The Central Bank noted that Deutsche Bank AG has taken action against clerical abuses and punish perpetrators, and recognized the German Bank a victim of the illegal scheme. On the background investigation was avolio several employees of Deutsche Bank, including head of the equity trading Tim Wiswell. A trader challenged the legality of the dismissal in court, demanding compensation in the amount of 31 million rubles, but the court refused to satisfy the claim.