Deutsche Bank has agreed to pay the equivalent of $630 million (585 million euros) in fines to US and British regulators over money laundering. <br /><br /> It had failed to prevent around $10 billion (9.29 billion euros) in suspicious trades out of Russia between 2011 and 2015.<br /><br /> One scheme involved the bank’s Moscow, London and New York offices buying Russian companies’ shares in roubles on behalf of clients. <br /><br /> Shortly afterwards identical quantities of the same shares would be sold at the same price through its London branch.<br /><br /> DFS Fines Deutsche Bank $425 Million for Russian Mirror-Trading Scheme https://t.co/jcxclaEH1g— NYDFS (@NYDFS) January 30, 2017<br /><br /> Opportunities missed<br /><br /> The New York Department of Financial Services said the trades “lacked economic purpose and could have been used to facilitate money laundering or enable other illicit conduct”.<br /><br /> The regulator said: “The bank missed numerous opportunities to detect, investigate and stop the scheme due to extensive compliance failures, allowing the scheme to continue for years.”<br /><br /> Britain’s Financial Conduct Authority separately said Deutsche Bank allowing customers to transfer billions from Russia to offshore bank accounts “in a manner that is highly suggestive of financial crime”.<br /><br /> Press release: we fine Deutsche Bank £163 million for serious anti-money laundering controls failings https://t.co/amX0JSio2u— FCA (@TheFCA) January 31, 2017<br /><br /> Easy commissions<br /><br /> Deutsche Bank previously said it had disciplined some employees over the trades. It also cut back on its investment banking activities in Russia.<br /><br /> The investigation found Deutsche Bank’s Moscow traders facilitated the scheme, with most of the transactions placed by a single trader representing both sides of those “mirror” transactions.<br /><br /> Deutsche’s Moscow traders did not question the suspicious trades because it made for easy commissions when their Russian business had slowed, the regulator found.<br /><br /> Deutsche Bank’s Russia Settlements Help But Don’t Heal https://t.co/0ZqGWVWFWA— Taylor Ritchie (@TayloRitchieAsc) January 31, 2017<br /><br /> The Russian case settlements, on the heels of a $7.2 billion agreement with the US Department of Justice earlier this month over the misselling of mortgage-backed securities, were welcomed by the financial markets. <br /><br /> That is because there is now more certainty over the bank’s exposure to fines and enforcement. It shares rose over one percent.<br />
