Frequently in the news for many reasons, Deutsche Bank has found itself in the spotlight once again after German investigators staged an onsite search at the bank’s Frankfurt office.
We last discussed Deutsche Bank at length when the U.S. Federal Reserve imposed a $186 million fine on the European financial institution for deficiencies in anti-money laundering (AML) protocols. At the time, that fine brought the total penalties assessed by the Federal Reserve against Deutsche Bank to $285 million for violations related to sanctions and money laundering.
This time, German regulators are examining the bank's operations. Deutsche Bank, founded in Berlin in 1870, is again under scrutiny for potential money laundering issues. Money laundering and tax evasion are just two forms of criminal tax fraud that continue to draw enforcement attention in global markets. For a more detailed overview of criminal tax exposure, download our ebook, "Will I Be Charged with Criminal Tax Fraud?"
As reported by the BBC, the search was related to unnamed or unknown employees at the bank. While media reports have linked Russian oligarch Roman Abramovich to the investigation, his attorneys state that he is not connected to the probe.
Enforcement efforts continue
According to the Organized Crime and Corruption Reporting Project (OCCRP), the enforcement action focuses on activity between 2013 and 2018 and may involve delayed filings of Suspicious Activity Reports (SAR). SARS are required in regulatory environments where money laundering is detected. They are intended to flag transactions deemed suspicious and may warrant further review. In the U.S., SARs are required of banks and a wide swath of financial institutions. In the U.S., SARs are filed with the Financial Crimes Enforcement Network (FinCen). In Germany, they are filed with the German Financial Intelligence Unit (FIU).
A prosecutor involved in the investigation told OCCRP, “In the past, Deutsche Bank AG maintained business relationships with foreign companies that, in the context of other investigations, are themselves suspected of having been used for the purpose of money laundering.”
A spokesperson for Deutsche Bank stated, “We are of course fully cooperating with the public prosecutor’s office.” Money laundering remains a significant global enforcement focus for both financial institutions and regulators.
Concerned about allegations of tax evasion or other tax controversies?
If news of tax crime, payroll tax issues, or criminal allegations raises concerns about your own situation, speak with one of our experienced criminal tax lawyers. Robert J. Fedor, Esq., L.L.C., provides strategic legal representation to help clients avoid or deal with criminal charges. Contact our legal team at 440-250-9709. We serve clients in Northeast Ohio, Chicago, New York City, and internationally from our offices in Cleveland and Chicago.
