Deutsche Bank Securities, the U.S. subsidiary of Germany’s Deutsche Bank, has been fined $4 million in civil penalties following charges by the Securities and Exchange Commission (SEC) for failing to promptly file Suspicious Activity Reports (SARs).
Under U.S. banking regulations, broker-dealers like Deutsche Bank Securities are required to file SARs when they suspect that certain transactions involve illicit funds, lack a lawful purpose, or may facilitate criminal activity. The SEC found that between April 2019 and March 2024, Deutsche Bank Securities either delayed or failed to complete investigations related to SARs. In some instances, the reports were filed over two years after they were initially requested by law enforcement or regulators.
“Even the best information collected from SARs is of limited use if it’s stale by the time it’s provided to law enforcement,” said Sheldon L. Pollock, Associate Director of the SEC’s New York Regional Office. “This action holds Deutsche Bank Securities accountable and underscores the importance of timely SAR filings for market registrants.”
In response to the settlement, a Deutsche Bank spokesman stated, “We take our legal and regulatory obligations seriously. As noted in the settlement, we have cooperated with the SEC in the investigation and have undertaken remedial actions prior to today’s settlement.”
The SEC determined that Deutsche Bank Securities violated Section 17(a) of the Securities Exchange Act and Rule 17a-8. Without admitting or denying the findings, the firm agreed to a censure, a cease-and-desist order, and the $4 million penalty.
By fLEXI tEAM
Comments