US probes Deutsche Bank's 'Russia sanction violation'

Europe's second-largest bank is under investigation in the US for allegedly violating Russia sanctions

US probes Deutsche Bank's 'Russia sanction violation'

World Bulletin / News Desk

The U.S. Department of Justice is investigating Deutsche Bank for allegedly violating sanctions imposed on Russia for its role in the Ukraine conflict, the German bank confirmed in a statement late Sunday.

The investigation is being escalated as more evidence of the bank’s alleged moves to trade on behalf of Russian clients on foreign markets has reportedly come to light.

The bank allegedly bought stocks for Russian clients through transactions in London, but received payment in rubles in Russia. The effect would be to transfer funds out of Russia for financial services in violation of sanctions.

In July, the New York State Department of Financial Services formally requested information on Deutsche's trading activity in Russia. Several of the bank's clients are named as subject to U.S. sanctions on financial activities imposed for Russia's actions in the Ukraine conflict.

Deutsche Bank is itself investigating the matter, the statement said. "We are investigating circumstances around equity trades entered into by certain clients with Deutsche Bank in Moscow and London that offset one another," the bank said in a statement.

"Deutsche Bank has taken disciplinary measures with regards to certain individuals in this matter and will continue to do so with respect to others as warranted," it added.

Former Deutsche Bank head of Russian equities Tim Wiswell was suspended in September, and ultimately dismissed for alleged involvement in the so-called "mirror-trading" scheme. Wiswell is, however, suing the bank for wrongful dismissal.

Deutsche Bank said in the statement that it had suspended "several other employees" in connection with its internal investigation of the matter.

Last Mod: 26 Ekim 2015, 12:55
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