June 13, 2016
Deutsche Bank AG will do “everything in regard to anti-money laundering, filtering, and sanctions,” Werner Steinmüller, head of global transaction banking at Deutsche Bank, told the Financial Times. The banker’s assurance comes in response to the UK Financial Conduct Authority (FCA), which has identified inadequate controls for combating financial crimes at the bank. At Deutsche, 2016 will be a crucial year as restructuring will reach its peak to drive profitability in coming years.
The FCA conducted a review in the preceding year, finding a series of failings to tackle financial crimes at the bank. Among other shortcomings, use of the obsolete Manta system for transaction monitoring came under the limelight. To this, Mr. Steinmüller pressed that the bank expects to fully incorporate an updated version within the next 12 months at its “key locations,” namely Germany, the US, and UK.
Last month, the financial regulatory authority warned Deutsche Bank about “serious” and “systemic” shortcomings in controls against financial crimes at the bank, including money laundering and terrorist financing. The FCA letter, dated March 2, highlighted that “DB UK had serious AML (anti-money laundering), terrorist financing, and sanctions failings which were systemic in nature.” It went on to say that “effective senior management engagement and leadership on financial crime had been lacking for a considerable period of time.”