U.S. Federal Reserve And New York State Department Of Financial Services Fine German Company Deutsche Bank 258 Million USD For Working With U.S.-Sanctioned Countries
German company Deutsche Bank was fined $258 million by the US Federal Reserve and New York State Department of Financial Services (NYDFS) for reportedly working with US-sanctioned countries including Iran and Syria.
BBC News reported Nov. 4that the bank will have to pay the penalties to the two agencies separately.
In addition, the Federal Reserve said that employees involved in the alleged illegal transactions should not be allowed to work in the German company again.
"The firm did not have sufficient policies and procedures to ensure that activities conducted at its offices outside of the United States complied with US sanctions laws," the Federal Reserve said.
The Federal Reserve also added that the Deutsche Bank is required to build an "enhanced" course to "ensure the global compliance" with US penalties, branding the company's connections with Iran and Syria as "unsafe and unsound."
Channel News Asia noted that the German banking giant will have to pay $200 million to the NYDFS, while it will also pay $58 million to the US Federal Reserve.
Further reports have revealed that Deutsche Bank plans to mount an independent monitor after the incident. Also, the German company will also terminate six employees who were allegedly involved in the transactions with US-sanctioned countries.
A spokeswoman from the German company said that they have already reached an agreement with the US Federal Reserve and the NYDFS, as forecasted by The Wall Street Journal.
"We are pleased to have reached a resolution with the New York Department of Financial Services and the Federal Reserve. The conduct ceased several years ago, and since then we have terminated all business with parties from the countries involved," the spokeswoman said.
"Deutsche Bank has initiated the necessary steps with regard to the affected employees," she added.
According to NYDFS, customers from Iran, Syria, Libya, Myanmar and Sudan reportedly engaged in the transactions. The agency also said that the German banking giant made a decision to pursue a "lucrative" US dollar business for the penalized customers.
