Deutsche Bank investigates potential $6bn money laundering scams by Russian clients

By bne IntelliNews June 5, 2015

bne IntelliNews -

 

Germany's largest bank, Deutsche Bank, is conducting an internal investigation into alleged money laundering by Russian clients of up to $6bn, after being approached by the Central Bank of Russia, Bloomberg reports.

Russia's central bank asked Deutsche Bank in October 2014 to examine share-trading activities by some of its bank clients over the last four years, a source acquainted with the matter told Bloomberg. Deutsche Bank is now sifting through data from 2011 through 2015, and has additionally notified the UK’s Financial Conduct Authority, the European Central Bank and Germany’s financial investigation unit Bafin of the ongoing investigation, Bloomberg writes.

“We are committed to participating in international efforts to detect and combat suspicious activities and we take strong action where we find evidence of misconduct,” Deutsche Bank told Bloomberg on June 5, adding that, “We have placed on leave a small number of individuals from our Moscow operation pending the results of an internal review.” Deutsche Bank has a workforce of around 1,000 in Moscow and St Petersburg.

According to the Bloomberg report, the transactions concern ruble stocks bought by Russian clients through Deutsche Bank, with simultaneous trades conducted through London where the bank bought the same securities in US dollars for the clients, potentially allowing Russian clients to move money abroad illicitly. The total volume of funds thus moved could exceed $6bn, one source told Bloomberg. 

Manager Magazin, a German financial monthly, reported last month that Deutsche Bank had notified Bafin about possible money laundering in Moscow.

Related Articles

Drum rolls in the great disappearing act of Russia's banks

Jason Corcoran in Moscow - Russian banks are disappearing at the fastest rate ever as the country's deepening recession makes it easier for the central bank to expose money laundering, dodgy lending ... more

Kremlin: No evidence in Olympic doping allegations against Russia

bne IntelliNews - The Kremlin supported by national sports authorities has brushed aside "groundless" allegations of a mass doping scam involving Russian athletes after the World Anti-Doping Agency ... more

PROFILE: Day of reckoning comes for eccentric owner of Russian bank Uralsib

Jason Corcoran in Moscow - Revelations and mysticism may have been the stock-in-trade of Nikolai Tsvetkov’s management style, but ultimately they didn’t help him to hold on to his ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335
Dismiss