Deutsche Bank’s AG flag is flown outside the company’s office fees on Wall Street in New York.
Mark Kajalrich | Bloomberg | Getty Images
Financial stocks came under pressure on Monday amid a report that a number of global banks have moved illegal funds over the past two decades despite warnings from U.S. officials.
Shares of Dutsch Bank fell about 8%, while JPMorgan fell about 5% in premarket trading. Goldman Sachs, Citigroup and Bank of New York Mellon all had at least 2.5% lower turnover. The sell-off was fueled by a new investigation by BuzzFeed and the international consortium Investig f Investigative Journalists (ICIJ), which found that banks’ internal compliance officers had laundered more than શક્ય 2 trillion in possible transactions between 1999 and 2017. Criminal activity. The report cites confidential documents submitted by banks to the US government.
Reports of this leaked suspicious activity do not indicate malpractice, and it is not a U.S. citizen. It was only a small fraction of the reports recorded in the Department of the Treasury’s Financial Crimes Enforcement Network, the news report said.
Deutsche Bank appears to have leaked $ 1.3 trillion in suspicious money in the files, while JPMorgan disclosed 5 4,514 billion, the report said. Other banks cited in the probe include HSBC Holdings, Standard Chartered and Bank New York Mellon. HSBC is down about 7% in premarket trading to a 25-year low.
In a statement to CNBC, HSBC said, “All information provided by ICIJ is historical and complements the conclusion of our Deferred Prosecution Agreement (DPA) in 2017.”
“Since 2012, HSBC has embarked on a multi-year journey to improve its ability to fight financial crime in more than 60 jurisdictions,” a HSBC spokesman said. “At the end of 2017, the Department of Justice, after receiving all the reports from the Monitor, determined that HSBC fulfills all its obligations under the DPA. HSBC is a much safer institution than in 2012.”
“This is not new information for us or for our regulators,” Dutshe Bank told CNBC.
JPMorgan said it is reporting suspicious activity to the government “so that law enforcement can fight financial crime, and thousands of people and millions of dollars are dedicated to this important task.”
“We have played a leading role in anti-money laundering reform, which will modernize how government and law enforcement deal with money laundering, terrorist financing and other financial crimes,” the bank told CNBC.
N Wilfred Frost of CNBC contributed the report
To subscribe CNBC Pro For exclusive insights and analysis and live business day programming around the world.
.
