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- Federal authorities are reportedly investigating whether Deutsche Bank failed to properly comply with anti-money-laundering regulations.
- The New York Times reported that federal prosecutors from multiple jurisdictions and the FBI are probing how Deutsche Bank dealt with internal suspicious-activity reports, including some that involved the White House senior adviser Jared Kushner.
- Last month, a company whistleblower told The Times she flagged a series of suspicious money transfers between Kushner Companies and Russians that were never submitted to the US Treasury Department.
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Federal authorities are investigating whether Deutsche Bank failed to properly comply with anti-money-laundering regulations, The New York Times reported on Wednesday.
Citing seven sources familiar with the matter, the report said federal prosecutors from multiple jurisdictions and the FBI are probing how Deutsche Bank dealt with internal suspicious-activity reports flagging possible money laundering, including transactions linked to the White House senior adviser Jared Kushner.
Last month, a whistleblower named Tammy McFadden who worked in the bank’s anti-money-laundering division told The Times that she flagged a series of suspicious money transfers between Kushner Companies and Russians at the height of the 2016 US presidential election.
When McFadden discovered the transfers from Kushner Companies to the Russians, she concluded they should be reported to the US government.
Usually, a report like McFadden’s would be reviewed by a team of anti-money-laundering experts who work separately from the private-banking division, McFadden and two other former Deutsche Bank managers told The Times.
But in this case, McFadden and her lawyer said the report went to managers in New York who were part of the private-banking division. They decided McFadden’s concerns were unfounded and decided not to submit the report to the Treasury Department’s financial-crimes unit, according to The Times report.
The Times reported that there is no evidence that Kushner himself or Kushner Companies is under investigation.
The Times also reported that other former members of Deutsche Bank’s anti-money-laundering division had prepared separate suspicious-activity reports in 2017 concerning transactions between the bank and President Donald Trump’s former charity that were not sent to the Treasury.
Trump’s charity was shut down last year after the New York attorney general’s office found it essentially functioned as a “slush fund” for the Trump family.
Deutsche Bank has long been under scrutiny for its lax lending standards, as well as its willingness to do business with Trump when most other banks refused to work with him because of his financial troubles.
In addition to federal prosecutors, the New York attorney general’s office and the House financial services and intelligence committees are investigating the bank’s relationship with the Trump family.
In April, the Trump family trust and the Trump Organization sued Deutsche Bank and Capital One Bank to block a subpoena from the House Financial Services Committee, saying the subpoenas “have no legitimate or lawful purpose” and were issued to “harass” Trump and “rummage through every aspect of his personal finances, his businesses, and the private information of the President and his family.”
A federal judge did not grant the Trump family’s request to block the subpoena, a decision the Trump family trust and Trump Organization are now appealing.