At DB, Anti-Money-Laundering Expert Saw Money Go From Kushner’s Firm To Russians
In 2016, anti-money-laundering experts at Deutsche Bank recommended that a series of transactions involving Jared Kushner’s real estate company be reported to a federal financial crimes watchdog, The New York Times reported last year.
- The bank’s software for detecting illicit activity flagged the transactions, which involved money flowing from Kushner Companies to Russian individuals, according to Tammy McFadden, a former Deutsche Bank anti-money laundering specialist who worked in the bank’s Jacksonville office.
- McFadden said she had “concluded that the transactions should be reported to the government — in part because federal regulators had ordered Deutsche Bank, which had been caught laundering billions of dollars for Russians, to toughen its scrutiny of potentially illegal transactions.”
- The former employee subsequently “drafted a suspicious activity report and compiled a small bundle of documents to back up her decision.”
- McFadden and two former Deutsche Bank managers told The Times that such a report typically “would be reviewed by a team of anti-money laundering experts who are independent of the business line in which the transactions originated — in this case, the private-banking division.”
- However, this report “went to managers in New York who were part of the private bank, which caters to the ultrawealthy,” who ultimately said “They felt Ms. McFadden’s concerns were unfounded and opted not to submit the report to the government.”
- According to McFadden, she “and some of her colleagues said they believed the report had been killed to maintain the private-banking division’s strong relationship with Mr. Kushner.”
The Times also noted that legal entities controlled by President Donald Trump also escaped further scrutiny after Deutsche Bank’s software flagged suspicious transactions in 2016 and 2017.