US federal authorities are looking into a potential lapse in money laundering requirements from Deutsche Bank. The investigation at one of the largest banks in the world could have long-lasting impacts on the industry and the White House.
Deutsche Bank in trouble again
According to Businesstimes, a federal inquiry into Deutsche Bank intends to find out if the bank failed to stop money laundering and other crimes. One of the most interesting parts of the investigation is linked to suspicious activity reports prepared by the bank’s employees. The report concerns with problematic transactions linked to Jared Kushner, the senior advisor and son-in-law of President Donald Trump.
This is not the only investigation that the bank is facing. It is already facing a number of overlapping government examinations related to the illicit movements of funds from the US financial system. The sources provided information on anonymity about the investigations. Many other banks are being investigated for similar reasons.
Tammy McFadden, the Deutsche Bank whistleblower, was recently contacted by the Federal Bureau of Investigation (FBI), according to lawyer Brian McCafferty. McFadden publicly criticized the anti-money-laundering systems at the bank while working as an AML compliance officer.
While talking to The New York Times, McFadden said that she flagged several transactions related to Kushner’s family in 2016. However, the managers at the bank decided not to file a suspicious activity report prepared by her. A few of her colleagues had similar experiences in 2017 while handling transactions related to Trump’s legal entities.
Note: Compare the best mobile banks here.
Is the FBI involved in the investigations?
It is not clear whether the FBI is examining the bank’s handling of these transactions. However, the federal agent who contacted McFadden’s lawyer was also involved in the interviews of Val Broeksmit, the son of a deceased Deutsche Bank executive, William S Broeksmit. The investigation began as an inquiry into the bank’s work with Russian money launderers; the agents told Val.
Since then, the investigation has expanded to cover a broader range of financial misconduct at the establishment. Sources briefed about the investigation also suggest an investigation into Deutsche Bank’s role in the massive money laundering scandal at Danske Bank. The specific scope of these investigations is still unclear. The bank is also being investigated by the US attorney’s offices in Manhattan and Brooklyn in the state of New York and the Money Laundering and Asset Recovery Section of the Justice Department. The agencies declined to comment on the matter.
