Deutsche Bank AG was fined $629 million by U.K. and U.S. authorities for compliance failures that saw the bank help wealthy Russians move about $10 billion out of the country using transactions that were likely thinly veiled attempts to cover up financial crime.
The U.K. Financial Conduct Authority issued a 163 million-pound ($204 million) fine Tuesday, hours after New York’s Department of Financial Services fined the bank $425 million, for failures over the so-called “mirror-trades.” A criminal investigation by the U.S. Justice Department is ongoing into the trades, which were used to convert rubles into dollars and transfer the money out of Russia.
The deals come weeks after Deutsche Bank agreed to a $7.2 billion settlement to resolve a U.S. investigation into its sales of toxic mortgage debt. While the bank has been pressing to wrap up regulatory reviews, investigations into whether it manipulated foreign-currency rates and precious metals prices haven’t been resolved.
From April 2012 to October 2014, mirror trades were used by Deutsche Bank customers to transfer more than $6 billion from Russia, through the German lender’s arm in the U.K., to overseas bank accounts including in Cyprus, Estonia, and Latvia, the FCA said. Another nearly $4 billion in suspicious “one-sided trades” were also carried out.