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The Federal Reserve on Wednesday imposed a consent order and a $186 million penalty on Deutsche Bank for failing to make sufficient progress in addressing anti-money laundering and sanctions compliance lapses identified in 2015 and 2017.

Following a series of examinations, the Fed concluded that the German lender had made insufficient progress to address flaws in its customer due diligence, transaction-monitoring and suspicious-activity-reporting processes as well as other aspects of its compliance program, the July 13 order states.

The compliance violations stemmed from Deutsche Bank’s ties with the Estonian branch of Danske Bank, which in 2018 admitted handling hundreds of billions of euros for offshore entities tied to Russia and other former Soviet states. Deutsche Bank terminated its correspondent relationship with the Danish lender in October 2015.

The order mandates Deutsche Bank to prioritize completing remedial work on its transaction monitoring systems, particularly in relation to high-risk business lines, and make significant improvements to its customer due diligence processes.

The Fed separately issued a written agreement ordering Deutsche Bank to improve its governance processes, risk controls and data management procedures.