FCA: Deutsche Bank financing terrorism

Published 04.05.2016 00:00
Updated 04.05.2016 00:16

Germany's biggest bank, Deutsche Bank, has been accused of financing terrorism and money laundering. The United Kingdom's Financial Conduct Authority (FCA) confirmed the bank has been committing financial crime in a ‘serious' and ‘systematic' way

One of the actors behind Turkey's biggest economic crisis in 2001 and Germany's biggest bank, Deutsche Bank, has experienced serious failings linked to financing terrorism and money laundering. The FCA accused Deutsche Bank of serious financial crimes, and according to a secret letter revealed by the Financial Times, the bank has been financing terror, breaking sanctions and laundering money in a "serious" and "systematic" way. The FCA conducted a detailed investigation into the bank last year and found that some customers' transactions were overlooked and serious shortcomings in documentation exist.

The aforementioned letter reads: "Deutsche Bank U.K. had serious AML [anti-money laundering], terrorist financing and sanctions failings, which were systemic in nature. Effective senior management engagement and leadership on financial crime had been lacking for a considerable period of time." This terror-oriented investigation is the third intervention into the bank following the Libor scandal and its mediation for the $10 billion suspicious trade with Russia.

Investigating 14 banks and fining billions of dollars so far for financial crimes, the FCA has been keeping a firm grip following the Libor scandal and Panama Papers leak. Deutsche Bank paid a $2.5 billion record-breaking fine over the Libor scandal. Stating that the bank has been "voluntarily collaborating," the FCA emphasized some changes have also been conducted in the administration as well. "We understand the importance of this issue and are committed to and engaged in fixing it," said a company spokesman in an emailed statement. The bank's co-CEO John Cryan had warned the employees in November 2015 to be more careful while recruiting new customers.

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