Deutsche Bank, a multi-national financial services company headquartered in Germany, will pay over $130 million in penalties for its violations of the US Foreign Corrupt Practices Act (FCPA) and its role in a commodities fraud scheme. This resolution between US authorities and Deutsche Bank includes criminal penalties of $85,186,206, criminal disgorgement of $681,480, victim compensation payments of $1,223,738, and $43,329,622, which the Bank will pay to the US Securities and Exchange Commission.
Between 2009 and 2016, Deutsche Bank, through its employees and agents, violated the FCPA by keeping false records and accounts to conceal bribes paid to third-party intermediaries. Moreover, Deutsche Bank employees again violated the FCPA intentionally by failing to implement internal accounting controls such as appropriate due diligence and monitoring. Consequently, Deutsche Bank will pay a total criminal penalty of $79,561,206 for this FCPA-related scheme.
In another case, between 2008 and 2013, Deutsche Bank precious metals traders engaged in a scheme to defraud other traders by cancelling precious metal orders before execution. Deutsche Bank has agreed to pay a total criminal amount of $7,530,218 for its role in this commodities scheme.
The Department of Justice decided upon the above-mentioned penalties based on Deutsche Bank’s failure to voluntarily disclose its misconducts and the nature and seriousness of the offenses. At the same time, the department also took Deutsche Bank’s cooperation and remediation measures into account.
Source: US Department of Justice