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Deutsche Bank fined by regulators over money laundering claims | |
(35 minutes later) | |
Deutsche Bank has been fined $630m (£504m) by US and UK regulators in connection with a Russian money laundering plan. | |
Under the scheme, clients illegally moved $10bn out of Russia via shares bought and sold through the bank's Moscow, London and New York offices. | |
Authorities said Deutsche had missed "numerous opportunities" to detect, investigate and stop the scheme. | |
Deutsche Bank said it was co-operating with regulators. | |
It also said it had put aside money to cover the cost of the settlement. | |
During the investigation, New York authorities and Britain's Financial Conduct Authority found that so called "mirror" trades had been carried out through the bank between 2011 and 2015. | |
Clients would purchase stocks in rubles in Moscow before their counterparts sold the same stock at the same price through the bank's London branch. | |
'Unsafe and unsound' | |
"By converting rubles into dollars through security trades that had no discernible economic purpose, the scheme was a means for bad actors within a financial institution to achieve improper ends while evading compliance with applicable laws," according to the legal document detailing the settlement with DFS. | |
Regulators blasted the bank for failing to spot the ruse, saying it had conducted its business in an "unsafe and unsound" manner. | |
They also said the lender's anti-financial crime teams were ineffective and understaffed. | |
In addition to paying the settlement, Deutsche Bank also will be required to hire an outside monitor to review its internal compliance measures. | |
It comes less than two weeks after the German bank finalised a $7.2bn settlement with the US Justice Department over its role in the 2008 financial crisis. | |
In addition to Monday's action, regulators fined three other banks for violations of anti-money laundering laws. | |
Italy's Intesa Sanpaolo was fined $235m, Agricultural Bank of China was fined $215m and and Mega Bank of Taiwan was fined $185m. | |
Mirror trades - how do they work? |