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Deutsche Bank hit with $150 million penalty over Jeffrey Epstein ties

July 7, 2020

New York's Department of Financial Services


Deutsche Bank has agreed to pay $150 million in penalties over its relationship with Jeffrey Epstein as part of a consent order with regulators in New York, the state's Department of Financial Services said Tuesday.


The multinational investment bank headquartered in Frankfurt, Germany, "failed to properly monitor account activity conducted on behalf of the registered sex offender despite ample information that was publicly available concerning the circumstances surrounding Mr. Epstein's earlier criminal misconduct," the New York State Department of Financial Services said.


The news marks the first enforcement action against a financial institution by a regulator for dealings with Epstein, according to the department.


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Deutsche Bank responded to the news, saying the settlement reflects its "unreserved and transparent cooperation with our regulator."


"It also shows how important it is for us to continue enhancing our anti-financial crime capabilities," the bank said in a statement posted to its Twitter. "We have invested almost $1bn in improving our training, controls and operational processes, and have increased our AFC team to more than 1,500 people. Our transformation continues."


A Deutsche Bank spokesperson told ABC News they "acknowledge our error of onboarding Epstein in 2013 and the weaknesses in our processes, and have learnt from our mistakes and shortcomings."


"Immediately following Epstein’s arrest, we contacted law enforcement and offered our full assistance with their investigation," the spokesperson said. "We have been fully transparent and have addressed these matters with our regulator, adjusted our risk tolerance and systematically tackled the issues."


"Our reputation is our most valuable asset and we deeply regret our association with Epstein," the spokesperson added.





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