United States: Deutsche’s Compliance Procedures Limit Damage of Sanctions Settlement

A U.S. unit of Deutsche Bank AG paid a fraction of the maximum penalty it could have faced to settle alleged sanctions violations, as the Treasury Department pointed to the bank’s compliance efforts and cooperation as mitigating factors.

Deutsche Bank Trust Co. Americas agreed to pay $583,100 in settlements resolving claims that it violated U.S. sanctions, the Treasury Department said. The sum of the settlement between the bank and the Treasury’s Office of Foreign Assets Control, which enforces sanctions, is minuscule compared with the $75 million maximum civil penalty the company could have faced. Details of the enforcement action by OFAC outlined steps taken by the company and other mitigating factors that led to penalty reductions.

The combined settlement focused on two alleged violations. The New York-based Deutsche unit agreed to pay $157,500 for processing a large transaction involving a sanctioned oil company in Cyprus, and $425,600 for processing dozens of payments destined for accounts at a sanctioned Russian financial institution, the Treasury said Wednesday.

The original full article can be found at wsj.com

(Photo: HAYOUNG JEON/SHUTTERSTOCK)

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