Deutsche Bank fined $625 million for $10-billion money laundering from Russia
Financial regulators determined that the bank was acting in an "unsafe and improper" manner while implementing the scheme.
German Deutsche Bank agreed to pay a $425 million fine New York NYSDFS bank regulator had imposed on it for violations during trading in Russian securities between 2011 and 2015. According to Reuters, NYSDFS believes that the bank was acting in an "unsafe and improper" manner while implementing the scheme, thus violating the state laws.
Deutsche Bank had to pay another fine of $200 million UK FCA financial regulator had imposed on it.
The bank’s transactions led to a $10 billion outflow from Russia. Blue chip shares were purchased in rubles in Moscow, and then almost immediately sold on the London Stock Exchange by affiliated scheme participants. New York operators cleared the money.
The Deutsche Bank admitted "it was impossible to determine the true purpose of the transactions," pointing out that "possibly it was tax evasion or something else equally illegal."
You may remember that in May 2015 it was the bank itself that informed the Federal Office for Financial Sector Supervision that its Moscow branch might be laundering money using questionable transactions in the derivatives market. Then, in August 2016, The New Yorker reported that Deutsche Bank’s Moscow office carried out mirror trades for some high-ranking Chechens. The fraud was about conducting a pair of transactions with a Russian company and an offshore one. The trade was aimed at converting rubles into a foreign currency and hiding the money abroad. Sergey Suverov, a bank’s manager, brought clients dealing in this kind of transactions in 2011. Igor Volkov, a broker, and traders Dina Maksutova and Georgy Buznik were involved in the scheme and covered by Tim Wiswell, their American superior. Some of the London and Moscow staff was aware of the transactions, the newspaper said.
Since 2008, Deutsche Bank has paid more than $13.9 billion of fines and settlements, causing serious damage to the Bank's financial performance. Germany stated in September 2016 that there has been no question of a bank rescue plan yet.