DEUTSCHE BANK FINED $150 MILLION FOR JEFFREY EPSTEIN RELATIONSHIP

Brigitte Kimichik • July 14, 2020

DEUTSCHE BANK FINED $150 MILLION FOR JEFFREY EPSTEIN RELATIONSHIP

Deutsche Bank has been fined $150 million by New York’s financial-services regulators, marking the first time that a bank has been penalized for its association with Jeffrey Epstein. Epstein’s relationship with DB started in 2013 after he was dropped by JPMorgan Chase over reputational concerns.

Regulators found that DB failed to monitor Epstein’s accounts by processing hundreds of suspicious transactions involving millions of dollars that should have raised red flags in light of his conviction as a sex offender in 2008 when he pleaded guilty in a Florida state court to soliciting prostitution from an underage girl. Apparently, the fine was also issued in part for DB’s relationship with two European banks (Danske Bank Estonia and FBME Bank) involved in money-laundering scandals.

Regarding Epstein, according to the Wall Street Journal, regulators said: “Among other transactions that should have raised questions….were payments to Russian models, school tuition fees for women and hotel and rent expenses that were consistent with public allegations of wrongdoing.” Law.com reported, these payments included excessive cash withdrawals, more than $7 million in settlement payments, and more than $6 million in payments to alleged co-conspirators and law firms.

Although Epstein was properly classified by the bank as high-risk, regulators said that DB “failed to scrutinize the activity in the accounts for the kinds of activity that were obviously implicated by Mr. Epstein’s past. ”

It will be interesting to see the continuing fallout from Epstein's alleged underaged sexual trafficking scheme which continued for years and may have involved several high profile individuals and politicians. Who will be found to have been complicit? Who will be outed as a participant and violator? All eyes are now on Epstein's rumored 'Madam,' Ghislaine Maxwell, who has been arrested and is being held in New York's Federal Metropolitan Detention Center in Brooklyn. She is awaiting arraignment on 4 federal charges relating to sex trafficking and sexual abuse of minors, and 2 federal charges for perjury for lying under oath to federal prosecutors.

Deutsche Bank has since issued a statement: “We acknowledge our error of on boarding Epstein in 2013 and the weaknesses in our processes, and have learned from our mistakes and shortcomings. Our reputation is our most valuable asset and we deeply regret our association with Epstein.”

Let's see what internal corrections DB will make regarding how Epstein's accounts were handled. Did Epstein's banker liaisons have knowledge regarding the illicit nature of his bank transactions? Does that make them complicit?

Stay tuned.

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