Scrutiny from DoJ on Deutsche Bank’s role in Danske money laundering scandal

The Justice Department has stepped up its investigation of Deutsche Bank’s role in the € 200bn ($ 220bn) money laundering scandal at Danske Bank in recent weeks, sources familiar with the investigation told Reuters..

The Justice Department’s new line of investigation is whether Deutsche Bank helped move toxic funds from Danske Bank, Denmark’s largest lender, to the United States. If proven, this could lead to significant financial penalties..

According to sources, representatives of the Ministry of Justice, who have been working closely with Estonian prosecutors for about a year, have also begun to cooperate with public prosecutors in Frankfurt..

Frankfurt prosecutors investigate Deutsche Bank’s role in processing payments for Danish bank.

Danske spokesman announced continued cooperation with the authorities of Estonia, Denmark, France and the United States.

The State Attorney’s Office for the Justice Department and Frankfurt declined to comment on the U.S. investigation due to be completed next year.

A Deutsche Bank spokesman said controls have improved significantly in recent years.

«We have repeatedly stressed that we are in a good and constructive exchange with the authorities», – he added.

Danske Bank admitted last year that suspicious payments totaling € 200 billion from Russia and other countries through its Estonian branch triggered a comprehensive investigation..

Sources previously told Reuters that the bulk of these payments were processed by Deutsche Bank..

Although the Justice Department last year asked Deutsche Bank for information regarding transactions at Danske Bank, at the time its executives believed that the investigation was focused on Danske Bank and that the German bank itself was not the focus of investigators..

However, Deutsche Bank officials have been advised in recent months that investigators are interested in the bank’s role in facilitating Danske Bank’s trading and its possible inability to report suspicious transactions quickly enough..

Deutsche Bank has already paid about $ 700 million in fines following claims by British and American regulators for money laundering in the amount of $ 10 billion in so-called mirror deals with Russia, which the Justice Department is still investigating..

US investigators spoke to a current and former US employee of Deutsche Bank who expressed concern about possible suspicious transactions with supervisors, but was ignored.

Estonian Prosecutor’s Office shares its findings about Danske Bank, hoping that the country will receive some of the fines paid.

Estonian prosecutors are studying more than ten transactions of suspicious funds, for a total of up to $ 2 billion. Reuters was unable to figure out the details of these transactions..

Deutsche Bank warned the money laundering data collector and government prosecutors in February of more than one million suspicious money transfers, five years after the Danske Bank scandal.

Washington and Frankfurt are now asking what caused the delay and whether there were omissions, as some of the contested remittances that were previously allocated by compliance officers are among those that were subsequently tagged by Deutsche Bank.

Frankfurt prosecutors also questioned Sylvie Materat, a former Deutsche Bank senior anti-money laundering executive who is the highest rated among the ten bankers and Deutsche Bank executives they interviewed. The Justice Department’s new line of investigation is whether Deutsche Bank helped move toxic funds from Danske Bank, Denmark’s largest lender, to the United States. If proven, this could lead to significant financial penalties..

According to sources, representatives of the Ministry of Justice, who have been working closely with Estonian prosecutors for about a year, have also begun to cooperate with public prosecutors in Frankfurt..

Frankfurt prosecutors investigate Deutsche Bank’s role in processing payments for Danish bank.

Danske spokesman announced continued cooperation with the authorities of Estonia, Denmark, France and the United States.

The State Attorney’s Office for the Justice Department and Frankfurt declined to comment on the U.S. investigation due to be completed next year.

A Deutsche Bank spokesman said controls have improved significantly in recent years.

«We have repeatedly stressed that we are in a good and constructive exchange with the authorities», – he added.

US investigates Deutsche Bank's role in Danske Bank scandal

Danske Bank admitted last year that suspicious payments totaling € 200 billion from Russia and other countries through its Estonian branch triggered a comprehensive investigation..

Sources previously told Reuters that the bulk of these payments were processed by Deutsche Bank..

Although the Justice Department last year asked Deutsche Bank for information regarding transactions at Danske Bank, at the time its executives believed that the investigation was focused on Danske Bank and that the German bank itself was not the focus of investigators..

However, Deutsche Bank officials have been advised in recent months that investigators are interested in the bank’s role in facilitating Danske Bank’s trading and its possible inability to report suspicious transactions quickly enough..

Deutsche Bank has already paid about $ 700 million in fines following claims by British and American regulators for money laundering in the amount of $ 10 billion in so-called mirror deals with Russia, which the Justice Department is still investigating..

US investigators spoke to a current and former US employee of Deutsche Bank who expressed concern about possible suspicious transactions with supervisors, but was ignored.

Estonian Prosecutor’s Office shares its findings about Danske Bank, hoping that the country will receive some of the fines paid.

Estonian prosecutors are studying more than ten transactions of suspicious funds, for a total of up to $ 2 billion. Reuters was unable to figure out the details of these transactions..

Deutsche Bank warned the money laundering data collector and government prosecutors in February of more than one million suspicious money transfers, five years after the Danske Bank scandal.

Washington and Frankfurt are now asking what caused the delay and whether there were omissions, as some of the contested remittances that were previously allocated by compliance officers are among those that were subsequently tagged by Deutsche Bank.

Frankfurt Prosecutors also questioned Sylvie Materat, a former top anti-money laundering executive at Deutsche Bank who is the highest rated of the ten bankers and Deutsche Bank executives they interviewed..

Materat, who left Deutsche Bank this year, and other employees were interviewed as witnesses whose first-hand testimony is used to shape the big picture..

Materat declined to comment. Deutsche Bank spokesman confirmed she was questioned as a witness

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