Red flags started popping up inside Deutsche Bank AG in early 2014 about billions of dollars in suspect trades from Moscow. A Cypriot bank sent a query to London. Russia’s central bank raised questions. Moscow back-office staffers compiled a list of dubious transactions.
Some of the warnings were ignored. Others were dismissed. It wasn’t until early 2015, when Russian authorities began interviewing bank employees in Moscow, that top executives in Frankfurt were alerted and the bank began a full-scale internal investigation.
What Deutsche Bank quickly found: a “systemic” failure in internal controls meant to prevent money laundering and financial crime. Those critical deficiencies, as it called them, allowed a “suspected money-laundering pattern” to pump as much as $10 billion out of Russia from 2012 through 2014.
The full original article can be found at bloomberg.com