Deutsche Bank has chosen not to report multiple suspicious transactions flagged by its anti-money laundering specialists despite their recommendations, the New York Times writes.
Transactions involving bank accounts belonging to entities controlled by U.S. President Donald Trump and his son-in-law/senior advisor Jared Kushner were not reported to the Treasury Department’s Financial Crimes Enforcement Network despite compliance staff members believing them to be suspicious. According to former employees of Deutsche Bank, multiple transactions were with overseas entities and individuals considered suspicious.
After Trump became president, the Jacksonville, Fla.-based Special Investigations Unit took over reviewing his and his companies’ transactions. Despite producing multiple reports involving Trump-controlled or owned companies, none of the reports were filed to the financial watchdog.
The bank’s former employees believe this attitude shows Deutsche Bank's lax approach to anti-money laundering regulations. While not all flagged transactions mean money laundering occur, and banks can opt not to file suspicious activity reports if decided there no suspicious activity occurred, former employees believe the bank wishes to preserve its relationship with wealthy clients.
“You present them with everything, and you give them a recommendation, and nothing happens,” said former Deutsche Bank anti-money laundering specialist Tammy McFadden. “It’s the D.B. way. They are prone to discounting everything.”
Deutsche Bank claims no investigator has ever been stopped for “escalating activity identified as potentially suspicious.”
Authorities have started investigating Trump’s relationship with the bank. Congressional and state authorities have required the bank’s records connected to the president, his family and their companies. However, Trump sued the bank in order to stop it from proceeding with congressional subpoenas.