Deutsche Bank headquarters in Frankfurt: The institute has not been able to get the permanent problem of money laundering under control for years.
Photo: Boris Roessler / picture alliance / dpa
The financial regulator Bafin apparently fears that Deutsche Bank will not get its massive weaknesses in the fight against money laundering and terrorist financing under control as planned.
The authority is therefore threatening fines if the financial institution does not implement the regulatory requirements in a timely manner.
The supervisor made this public on Friday evening on its website.
It is the latest escalation between the two sides in the years-long struggle for effective money laundering controls.
Deutsche Bank has been dabbling in building working systems to fight financial crime for about a decade.
The institute spent billions on it.
But the processes and instruments are still not working as required by the Bafin.
The authority had therefore already ordered a special supervisor for the institute in autumn 2018.
That wasn't enough.
In the spring of 2021, the supervisory authority extended and expanded the minder's mandate.
Penalty payments could now be added if the bank does not eliminate the grievances, some of which Bafin had warned about four years ago, in a timely manner.
The projects are expected to be completed by mid-2023.
A bank spokesman said a large part of the measures had now been implemented and would ensure that the institute met the expectations of the supervisory authorities.
"We will continue to use the necessary resources," said Deutsche Bank.
Deutsche Bank's ongoing money laundering project has already brought in a number of raids - most recently in the spring of this year.
Officials from the Frankfurt public prosecutor's office, the Federal Criminal Police Office and Bafin searched the bank's offices.
The triggers were deals by a former Syrian vice president.
Although he was not a customer of the bank, the bank processed the payments and apparently submitted suspected money laundering reports later than required.
The procedure has now been discontinued.
The institute paid a fine of a good seven million euros.