Deutsche Bank Internal Report Sees Laundering Risk: Guardian

(Bloomberg) -- Deutsche Bank AG highlighted the risk of legal action and fines in connection with a Russian money laundering scheme, the Guardian newspaper reported Wednesday, citing an internal report by the German lender.

The bank concluded that there is a good chance that U.S. and U.K. regulators will take legal action against it over a scheme sometimes referred to as the Global Laundromat the British newspaper reported, citing the confidential document. Senior bank managers may also be in danger of prosecution, the Guardian said.

Deutsche Bank “cannot comment on potential or ongoing investigations or any matters regarding our regulators” but is committed to providing “appropriate information to all authorized investigations,” a spokesman said. The bank has “considerably increased” its anti-financial crime staff since 2015,” he said.

Such legal action would add to existing issues faced by Germany’s largest lender. Police raided its Frankfurt headquarters last year seeking evidence that some employees at its wealth management unit helped clients avoid taxes. The U.S. Federal Reserve is looking into the bank’s role in a money-laundering involving Danske Bank, people familiar with the matter have said.

The internal report on the Russian Laundromat was prepared by Deutsche Bank anti-financial crime executives Philippe Vollot and Hinrich Volcker, the Guardian said. Vollot’s departure from the lender was announced last summer, suggesting that the report was prepared before that date. He has since joined Danske Bank.

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