Deutsche Bank got fined and it now has to pay a huge amount of money for transacting business with U.S.-sanctioned countries like Iran and Syria.
In a report by The Guardian, one of the largest German-banking company will pay about $258 million in fines according to U.S. regulators.
Moreover, the Federal Reserve said that the banking firm does not have sufficient policies and procedures that ensure the activities conducted at its offices outside of America, complied with the sanctions given by its laws.
For a breakdown, Deutsche Bank will pay the $200 million to the New York Department of Financial Services and the remaining $58 million to the Federal Reserve.
In addition, the largest bank of Germany will also install an independent monitor and fire six of its employees who were involved in the sanctions-evasion scheme and bar three other employees from any work that involves the company's U.S. operations.
According to USA Today, the said transactions, which were processed from at least 1999 through 2006, were forbidden based on U.S. economic sanctions imposed over findings of terrorism or other potential threats to America.
These alleged forbidden transactions were found out through the emails uncovered by investigators which showed that bank employees and customers knew that the transactions were improper but went with it anyway.
As reported, one email even said "Let's also keep this email strictly on a 'need-know' basis, no need to spread the news..."
In addition, a bank training manual warned and specified that special attention must be given to orders in which countries/institutes with embargos are involved. Banks under embargo of the U.S., like Iranian banks, must not be displayed in any order to Deutsche Bank New York or any other bank with American origin, due to the danger that exists that the amount will be frozen in America.
Furthermore, Deutsche Bank clients in Iran cautioned that "No Iranian names to be mentioned when making payment to New York," in a message to the bank.
The New York Times reported that several of the employees involved in the conduct have already left the bank, according to regulators.
It's also interesting to note that the settlement comes nearly a week after the bank announced its plan to cut 35,000 jobs, shut down operations in some countries and make significant changes in a bid to reverse declining profits and fix the bank's regulatory mistakes.
The investigations and settlements of cases, which involves violations of United States sanctions are already nearing their end just as Washington is relaxing its stance toward foreign countries like Iran and Cuba.
