New York – Deutsche Bank will pay nearly $ 125 million to avoid a US prosecution on charges of engaging in foreign corruption schemes and manipulating precious metals markets, the latest blow to a bank trying to recover from a series of scandals.
Germany’s largest bank agreed to pay because it entered into a three-year deferred litigation agreement with the US Department of Justice and a related civil agreement with the US Securities and Exchange Commission.
Court documents show that nearly all payments relate to allegations that Deutsche Bank violated the Federal Foreign Corrupt Practices Act (FCPA) in its dealings in Saudi Arabia, Abu Dhabi, China and Italy. Nearly two-thirds of the compensation is a criminal fine.
The agreements were announced Friday during a federal court hearing in Brooklyn, New York.
He said, “Deutsche Bank has engaged in a criminal scheme to hide the payments of so-called advisers around the world who have served as bribes to foreign officials and others” in order to gain “profitable business” and keep it in the current situation. American attorney Seth Ducharme in Brooklyn.
A spokesman for the bank said, “We are responsible for these previous measures” that took place from 2008 to 2017, after comprehensive internal investigations and full cooperation with the authorities.
Five years of losses
Deutsche Bank is looking to restore profitability after five years of losses, including closing some businesses and reducing the workforce by 18,000.
He is also trying to restore his image in Washington, amid several investigations into his relationship with US President Donald Trump.
Prosecutors accused Deutsche Bank of violating the books and records provisions of the Foreign Corrupt Practices Act, which prohibits companies with US operations from paying bribes elsewhere.
They alleged that the violations included camouflaging bribes paid to the client’s decision-maker in Saudi Arabia as referral fees and record millions of dollars in payments to a responsible broker in Abu Dhabi as advisory fees.
The SEC also accused Deutsche Bank of making improper payments to a consultant to help set up a clean energy investment fund with a Chinese government agency and an Italian tax judge to refer wealthy clients.
In the metals case, plaintiffs accused Deutsche Bank dealers of placing fraudulent deals, known as plagiarism, prompting other traders to buy and sell futures contracts at prices they would not otherwise have.
In 2019, Deutsche Bank agreed to pay $ 16.2 million to settle Securities and Exchange Commission (SEC) fees for violating the Foreign Corrupt Practices Act (FCPA) by appointing unskilled relatives of government officials in China and Russia for the purpose of acquiring or maintaining businesses.