AMLi NEWS UPDATE: BaFin delivers fresh blow to Deutsche's AML reforms - telling bank its safeguards not up to scratch and renewing KPMG's oversight at lending giant - AML Intelligence
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AMLi NEWS UPDATE: BaFin delivers fresh blow to Deutsche’s AML reforms – telling bank its safeguards not up to scratch and renewing KPMG’s oversight at lending giant

By AMLi Correspondents

DEUTSCHE Bank’s AML safeguards are still not up to required standards, Germany’s finance watchdog has found – in a embarrassing setback for the banking giant.

BaFin ordered Deutsche Bank to initiate further safeguards to prevent money laundering, according to a statement issued at the weekend.

Furthermore, BaFin has extended KPMG’s mandate to oversee progress on money laundering controls at Deutsche.

This move has surprised many as the Big Four auditor has already spent three years in this role after being installed by BaFin in 2018. Back then the move was viewed as extraordinary and followed a series of money laundering lapses. It was also the first time such an appointment was initiated.

In its statement BaFin said it wanted improved controls particularly regarding “regular customer reviews,” applying also to correspondent banking and the monitoring of transactions.

In response Deutsche Bank said it was improving controls but “we are also aware that there is still work to be done.”

“The order is the result of a constructive supervisory dialogue with the BaFin and reflects that the bank continues to attach the highest priority to detecting and remedying possible weaknesses in control processes,” the bank claimed.

“We are working intensively to also comply with the new requirements within the given timeframe,” Deutsche said.

Earlier last week Deutsche posted its best quarterly profit in seven years, and its share price moved to its highest point in three years.