Germany’s market regulator on Friday signaled Deutsche Bank still has more to do concerning previously ordered improvements to its anti-money laundering (AML) compliance controls.
BaFin announced it has “expanded the mandate” of a monitor it placed at Deutsche Bank nearly three years ago. In September 2018, BaFin ordered the bank to “take appropriate internal safeguards and comply with general due diligence obligations” under the German Money Laundering Act (Geldwäschegesetz). The regulator took the extra step of assigning KPMG as a monitor to oversee the bank.
Though Friday’s statement is short, it suggests the problems at Deutsche Bank persist. BaFin ordered the bank to “adopt further appropriate internal safeguards” and continue improving compliance with due diligence obligations, particularly regarding customer reviews.
KPMG will continue in its role reporting on and assessing the progress of implementation, according to the regulator.
Deutsche Bank recently announced a restructure of its compliance and anti-financial crime responsibilities as part of an impending change in leadership at the bank. Chief Risk Officer Stuart Lewis will leave by early 2022; his duties were transferred to Chief Administrative Officer Stefan Simon and combined under legal and regulatory affairs.
CEO Christian Sewing lauded the bank’s continuing improvements in a message to staff last week regarding first-quarter results but noted there is room to improve.
“Even though we have invested substantially [in our controls] over the past three years, there is still much to do. And each and every one of us has a part to play,” Sewing said.
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