BaFin Ends Special Monitor for Deutsche Bank’s Money-Laundering Controls

German financial regulator BaFin has reportedly withdrawn a special monitor assigned to Deutsche Bank, who was tasked with overseeing the bank’s efforts to address deficiencies in its money-laundering controls. The monitor had been in place since 2018 after BaFin identified significant shortcomings in the bank’s transaction monitoring processes.

Earlier this year, in February, BaFin extended the monitor’s mandate until October 2024, warning the bank of potential fines if it failed to resolve the issues. At that time, Deutsche Bank, Germany’s largest lender, stated that it was cooperating fully with the regulator and was allocating resources to address the concerns.

Neither Deutsche Bank nor BaFin has commented on the latest developments reported by Die Welt on Thursday.

While the monitor overseeing money-laundering compliance has now been withdrawn, a separate special monitor appointed by BaFin in October 2023 remains active. This second monitor is focused on addressing consumer service problems at Deutsche Bank’s Postbank unit, a matter that has also drawn regulatory scrutiny.

Deutsche Bank has faced repeated compliance challenges over the years, drawing attention from regulators both domestically and internationally. Despite the removal of the monitor, the bank’s commitment to addressing ongoing regulatory and operational issues remains under observation.

By fLEXI tEAM