Deutsche Bank threatens to axe 1,000 clients in compliance review

In a move following a compliance review, Deutsche Bank has sent letters to almost 1,000 corporate clients to warn them they will lose access to basic banking services within weeks because it has not received the documentation needed to verify their identity.

The affected blue-chip companies will not be able to sign with Deutsche’s “trust and agency services” division from the end of June. This highlights how banks are speeding up their efforts to comply with the tougher AML (anti-money laundering) rules imposed internationally by regulators in the last few years.

The clients have been notified that they have only a few weeks to overturn the termination letters by providing the documents to the lender, and only the contracts already signed will not be affected by the cut-off.

This situation shows how strict KYC (know-your-customer) compliance regulations can sometimes affect banks’ relationship with their clients.

But Deutsche Bank has a good reason to be vigilant, considering the bank’s involvement in the money laundering scandal around Danske’s Estonian Branch, in which the German lender was found to have cleared hundreds of billions of Euros of potentially suspicious transactions.

Argus Global specializes in regulatory compliance. We can help you determine if your company is up to date with the latest regulations with compliance reviews, and we offer as well ongoing support for all your compliance needs.

Date: 13th June 2019

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