Deutsche Bank will pay $ 130 million to settle a foreign bribery investigation and fraud allegations in the precious metals trade, US officials said on Friday.
The bribery case relates to illegal payments and the misreporting of these amounts in the bank’s books and records between 2009 and 2016, the Justice Department said in a press release.
The bank “knowingly and deliberately” kept inaccurate records after employees partnered with a Saudi advisor to facilitate bribes of over $ 1 million to a decision maker, the DOJ said.
In another case, the bank paid more than $ 3 million “without bills” to an advisor in Abu Dhabi who “lacked qualifications … aside from his family relationship with the client’s decision maker,” the DOJ said.
In addition to fines and payments for improper profits, Deutsche Bank has agreed to work with government investigators under a three-year deferred prosecution agreement.
In the case of commodity fraud, Deutsche Bank’s metal traders in New York, Singapore and London placed fake trade orders between 2008 and 2013 to benefit from deceiving other market participants, the DOJ said.
The agreement took into account Deutsche Bank’s collaboration with the probes, the DOJ said.
“Deutsche Bank has initiated criminal proceedings to conceal payments to so-called advisors around the world who served as bribes for foreign officials and others so that they could wrongly receive and keep lucrative business projects,” said acting US attorney Seth D. DuCharme from the Eastern District of New York.
“This office will continue to hold responsible financial institutions operating in the United States who employ criminal facilitation practices in order to increase their bottom line.”
“We take responsibility for these earlier actions, which took place between 2008 and 2017,” said Deutsche Bank spokesman Dan Hunter, adding that the company had taken “significant corrective action”, including hiring staff and updating the technology to fix the shortcomings.
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