Deutsche Bank's External Monitor to Examine Lender's Danske Role
(Bloomberg) -- Deutsche Bank AG’s external monitor, appointed by regulators last year to ensure the bank is improving money laundering and terrorism financing controls, has received an expanded mandate that now includes the lender’s role in the money-laundering scandal around Danske Bank A/S.
A spokeswoman for BaFin, the German financial watchdog, on Friday confirmed a report by Der Spiegel that the mandate has been expanded. She declined to comment further.
“As early as December it was our understanding that the extension of the Special Representative’s mandate would make sense,” a Deutsche Bank spokesman said in an email. “There is a strong interest in the matters concerning Danske Bank Estonia among regulators globally. There are still no indications of misconduct on our part in this context.”
The scandal around Danske has engulfed Deutsche Bank after it emerged that the lion’s share of suspicious money flows through the Danish bank’s Estonian unit was routed through the German lender, which acted as one of the correspondent banks. The U.S. Federal Reserve is also examining Deutsche Bank’s role in the case, people familiar have said.
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