Deutsche Bank Germany, along with its New York branch and other U.S. affiliates, collectively has been fined US$186 million by the U.S. Federal Reserve Board (FRB). This penalty was imposed for their failure to adequately address money laundering control problems and other shortcomings previously flagged by the U.S. central bank’s 2015 and 2017 consent orders.

The FRB has taken two enforcement actions in response. The first action is in relation to violations of the U.S. Office of Foreign Assets Control (OFAC) and Anti-Money Laundering (AML) Orders, resulting in a penalty of $140.1 million. The second action is for unsafe practices arising from governance and BSA/AML control failures concerning Deutsche Bank’s and Deutsche Bank Trust Company Americas’ (DBTCA) relationship with Danske Bank A/S (Danske Estonia), resulting in a penalty of $46.2 million.

Moreover, in addition to the fines, the FRB has issued a new consent order mandating the firm to prioritize the fulfillment of “several critical requirements” from the FRB’s previous orders. Failure to comply with these requirements may lead to “additional and escalated formal actions,” which could entail further penalties or corrective measures.