New York state financial regulators fined Deutsche Bank $ 150 million for dealing with child trafficking and sexual assault accused Jeffrey Epstein.
The state financial services department said Deutsche Bank, who has already agreed to pay, «could not properly control the activity on the accounts Jeffrey Epstein, despite the fact that in the media space there was a lot of information about the earlier criminal actions of the investor».
Officials said this is the first coercive action by the regulator against a financial institution for the deal with Epstein..
All this happens against the backdrop of the arrest Ghislaine Maxwell, who is accused of supplying the scandalous businessman with underage girls.
Deutsche Bank maintained relations with Epstein, as well as with individuals and legal entities close to him, from August 2013 to December 2018. The bank ended its relationship with him after the Miami Herald published a series of stories about a federal contract that Epstein illegally obtained in 2008 in Florida. However, the regulator believes that the credit institution served accounts associated with the Epstein company until the death of the millionaire in August 2019.
The financial services department said hundreds of millions of dollars’ worth of transactions had been processed due to the bank’s oversight failure, which should have raised suspicion and further scrutiny in light of Epstein’s reputation..
We are talking, for example, about payments to individuals who appeared as Epstein’s accomplices in sexual crimes..
The regulation states that banks are required to have anti-money laundering control mechanisms and are required to monitor their clients in order to prevent them from facilitating criminal activity..
Public Financial Services Quartermaster Linda Lacewell stated that Deutsche Bank was unable to properly monitor the activities of clients, which the bank itself considered to be high-risk.
«In particular, in the case of Jeffrey Epstein, despite knowing his abundant criminal history, the bank was unable to detect or prevent suspicious transactions worth millions of dollars.», – she said.
The Public Financial Services Department concluded that, among other things, Deutsche Bank did not control the activities of its clients Danske Estonia and FBME «in relation to their correspondent and clearing business».
The ministry recalled that Danske Estonia was at the center of one of the world’s largest money laundering scandals.
«Despite the fact that Deutsche Bank assigned Danske Estonia the highest possible risk rating, Deutsche Bank did not take adequate measures to prevent Danske Estonia from transferring suspicious transactions worth billions of dollars through Deutsche Bank accounts in New York».
CEO Deutsche Bank Christian Sewing in his internal message to all employees urged from now on to be more vigilant.
He noted that the inclusion of Epstein on the client list in 2013 was a critical mistake..
The spokesman added that immediately after Epstein’s arrest in July 2019, the bank contacted law enforcement agencies and offered any possible assistance in the investigation.