Germany's financial regulator is more thoroughly reviewing how domestic banks vet their correspondent clients amid reports of Deutsche Bank's indirect ties to illicit finance in the Baltic states, sources familiar with the agency's objectives told ACAMS moneylaundering.com. From 2007 to 2015, Deutsche Bank processed correspondent transactions and U.S. dollar payments for Danske Bank Estonia, which is now under investigation in Estonia, Denmark, France, the United Kingdom and the United States for handling €200 billion of potentially illicit funds from Russia and other former Soviet states over a period of several years. Deutsche Bank broke ties with Danske Bank Estonia four...
Germany’s financial intelligence unit has cleared a backlog of thousands of unprocessed suspicious transaction reports, or STRs, but still faces an uphill struggle to regain the confidence of bankers and compliance officers, sources told ACAMS moneylaundering.com.
Estonia took the rare step Tuesday of shuttering the local affiliate of a foreign lender, ordering Danske Bank to close in response to "profound and material" violations of anti-money laundering rules that "seriously damaged" the Baltic nation.
Denmark's largest financial institution has referred eight former employees of its Estonian branch to law enforcement after accusing them of willfully laundering billions of dollars for foreign clients from 2007 to 2015.