Press "Enter" to skip to content

Regulators fine Deutsche Bank over corruption charges

Regulators in the United States have fined Deutsche Bank over violation of corruption laws.

The Securities and Exchange Commission (SEC) said Germany’s largest lender agreed to pay more than $16m for hiring relatives of foreign government officials in order to win or retain business.

The SEC said the bank violated the Foreign Corrupt Practices Act by hiring poorly qualified relatives of foreign officials in Asia and Russia at their request.

Under the settlement, Deutsche Bank did not admit or deny the findings, according to the SEC.

The market regulator also said Deutsche had since has taken extensive remedial measures to fix its hiring compliance and internal accounting controls.

Advertisement Why Germany ‘can’t do investment banking’?

The bank’s spokesperson said: “Deutsche Bank provided substantial cooperation to the SEC in its inquiry and has implemented numerous remedial measures to improve the bank’s hiring practices.”

The charges alleged that between 2006 and 2014, the German bank employed underqualified relatives of executives working at state-owned enterprises with the “primary goal” of generating business for the bank.

More from Business Consultants line up bid for £200m KPMG pensions arm Johnson & Johnson ordered to pay $572m for ‘helping fuel opioid crisis’ 50 towns to share £1bn to improve high streets – is yours on the list? 2.9 magnitude tremor hits Cuadrilla fracking site – third quake in five days Top EU regulator Farkas to head banking lobbying group AFME ‘Sort out this mess’: BA told to take action after flight cancellation gaffe

Moreover, the SEC also found that Deutsche Bank employees tried to cover up the corrupt practises by creating false records and failed to accurately document and retain related expenses, violating accounting control rules.

Deutsche Bank has been previously fined £560m by both America and British regulators over alleged money laundering in Russia.

Employees at the bank have also been charged for assisting clients with tax avoidance by setting up offshore companies, as revealed by Panama Papers.

It is the latest challenge facing Deutsche’s chief executive Christian Sewing who has set about cutting thousands of jobs in a re-shaping of the lender.


Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *