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Disclosures about the failure of banks and government agencies to combat money laundering are affecting Deutsche Bank’s share price. Newspapers from Germany’s largest financial institution sometimes fell by more than six percent on Monday, the leading German Dax index falling just over two percent. Deutsche Bank shares also lost more than a major European banking index, Euro Stoxx Banks. The index fell nearly four percent on Monday morning.
According to FinCEN files, not only have money launderers used Deutsche Bank’s global infrastructure longer and to a greater extent than previously assumed, the bank’s security systems have obviously also failed. The shares of other banks that are part of the leak also fell significantly. Shares of Europe’s largest bank, HSBC, lost more than four percent on the Hong Kong stock exchange. British Standard Chartered shares also fell significantly.
The Greens in the European Parliament criticized the deficits discovered in the fight against money laundering as a “large-scale state failure” https://news.google.com/__i/rss/rd/articles/. “This wake-up call comes at the right time,” said Sven Giegold, the group’s financial and economic policy spokesman. “It is scandalous that major international banks allow large-scale money laundering even after the global financial crisis.” All the promises made by the banks to keep their hands off criminal money are now incredible: “With a successful fight against tax dumping and financial crime, the public coffers would be full rather than empty.”
SPD co-leader Norbert Walter-Borjans spoke out in favor of stricter laws. “We need a corporate criminal law that not only holds individual employees but also the perpetrating banks accountable for legal violations as a whole, including license revocation,” said Walter-Borjans of the Funke media group.
The one on Sunday afternoon of the international research network ICIJ, in which Southgerman’s newspaper is involved, information released from a data breach by the United States Department of the Treasury shows that banks around the world have been doing business with high-risk clients for years. Documents were made available online Buzzfeed News filtered out. They show that despite strict regulations, banks accepted criminal suspects as clients and made billions of euros worth of transfers to them. These events were sometimes reported hesitantly and sometimes years late.
Financial market experts also criticize bank failures and authorities. Former Green Party member Gerhard Schick, who heads the “Bürgerbewegung Finanzwende” association, said: “Financial markets are the key to fighting organized crime and autocratic rulers. Therefore, we must finally start here.”
CSU MEP Markus Ferber criticized the failures of the German authorities against money laundering. “Germany is not an island of happiness either,” he said. The anti-money laundering agency FIU overseen by the Federal Ministry of Finance is “an excellent example of what goes wrong in the fight against money laundering.”
