Deutsche Bank Warns Clients They Could Be Cut Off in Compliance Effort

Date : 12/06/2019 @ 09:26
Source : Dow Jones News

Deutsche Bank Warns Clients They Could Be Cut Off in Compliance Effort

By WSJ City 

Deutsche Bank has given around 1,000 investment-banking clients a month or less to hand over company-ownership information and other documentation in the bank's protracted effort to close compliance gaps, according to the bank and people familiar with the demands.

KEY FACTS

   -- The "know your customer," or KYC, letters have gone to asset managers and 
      corporate clients as part of a continuing, multiyear effort. 
 
   -- The clients have been told to provide the information by the end of 
      June... 
 
   -- ...or face the risk of getting cut off from new loans and other services. 
 
   -- From reviewing around 20,000 clients, the bank has severed relationships 
      with an undisclosed number of clients. 
 
   -- It has also cut off countries deemed possible conduits for money 
      laundering and terrorism financing. 

Why This Matters

Deutsche staff have been going through thousands of customer accounts over the last several years to identify high-risk clients and complete know-your-customer paperwork, some of it deficient, people inside and outside the bank say.

Deutsche Bank has suffered repeated lapses in fighting such crime, including failures in its money-laundering controls, leading to costly settlements with regulators, new investigations and congressional scrutiny.

A fuller story is available on WSJ.com

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(END) Dow Jones Newswires

June 12, 2019 04:11 ET (08:11 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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