Germany's Financial Regulator Tells Deutsche To Tighten Data Processing

Editorial Staff 19 February 2024

Germany's Financial Regulator Tells Deutsche To Tighten Data Processing

The report concerns the banker's transaction-monitoring systems.

The German financial supervisory authority, BaFin, has told Deutsche Bank to improve its data-processing systems for transaction monitoring to prevent money laundering and terrorism financing.

The watchdog, according to a report late last week from the Wall Street Journal, said it would extend the mandate of a special representative through October 2024 to monitor progress of the bank's biggest lender's transaction-monitoring systems. The order was initially issued last November and the decision has been legally binding since December, BaFin said.

“BaFin ordered the bank [Deutsche] to take specific measures to improve data processing systems for transaction monitoring," the regulator told WealthBriefing in an emailed statement. "There are no new findings in the order, which set a binding timeframe for the implementation of measures that were already agreed. We will continue to fully cooperate with BaFin and invest the necessary resources to implement these measures within the deadline. Regarding BaFin’s November 2022 order in the context of KYC, the bank has in the meantime completed the measures. As announced by BaFin, the special representative will monitor the implementation progress of the agreed measures for the improvement of our transaction monitoring systems, which we already have partially completed.”

Deutsche reported its fourth-quarter and 2023 financial results here.

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