Deutsche Bank: price collapse following reports of money laundering



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Following reports in the international media about major failures in the fight against money laundering, Deutsche Bank’s share price has collapsed. By noon Monday, the Frankfurt Stock Exchange plunged by more than eight percent. The German stock index (Dax) lost more than three percent against Friday’s closing price.

According to secret documents from the US Department of the Treasury, which WDR, NDR and “Süddeutsche Zeitung” reported in Germany, several international financial institutions accepted as clients suspected criminals, scammers and sanctioned oligarchs and made transfers worth billions of euros for them. The events mentioned in the so-called “FinCEN archives” were sometimes only reported very hesitantly and sometimes years late.

The data leak also makes Deutsche Bank difficult to explain. According to US investigators, Russian criminals and a money launderer working for terrorist groups are said to have laundered money through the Deutsche Bank branch in Moscow.

Commerzbank rejects the accusations

But not only Deutsche Bank is struggling with the fallout from global reports, Commerzbank is also under pressure. The money house has now rejected allegations of misconduct in the fight against money laundering. The issues mentioned in the “FinCEN files” are known and based on suspicious activity reports that Commerzbank sent to supervisory authorities for the most part between 2010 and 2016, the institute said.

The media had reported suspicious payments by Commerzbank, totaling around two billion euros. The share price collapsed by more than 6 percent compared to Friday’s closing price.

Since 2015, the bank has increased its global compliance management staff and invested more than 800 million euros, he said. “Today, we also use modern filter and control systems to continually ensure that suspicious transactions are reported to responsible authorities and that the company is complying with current regulatory requirements.”

Opposition sees “large-scale state failure”

In the political arena, after the revelations there have been calls for more powers for supervisory authorities and tougher sanctions. SPD leader Norbert Walter-Borjans called for “finally transparent rules and tangible sanctions for violations.” He criticized newspapers of the Funke media group that the CDU and CSU would block the SPD’s attempts to make “moral categories the standard for business.”

The Green Group’s economic and financial policy spokesman in the European Parliament, Sven Giegold, called it “scandalous that major international banks allow large-scale money laundering even after the global financial crisis.” According to Giegold, the Greens will start a hearing on the data breach in the new tax committee of the European Parliament, they see state failure on a large scale.

“It should be particularly interesting when exactly which of the involved banks did questionable business last,” Giegold said.

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