Germany's Deutsche Bank has been slapped with lawsuits, fines, and the possible indictment of "senior management" because of their actions in a $20 billion money laundering operation with Russia, the Guardian reports.
Deutsche Bank conceded that there is a high possibility that officials in the U.K. and U.S. will enforce "significant disciplinary action" against the group. Deusche admitted that the global financial scandal has greatly injured its "global brand" and will likely generate "client attrition," or market value and investor confidence decline.
In March 2017, Deutsche Bank was exposed for its connections to a massive money-laundering scheme nicknamed the Global Laundromat. Wealthy Russian criminals involved with the Kremlin, the dissolved KGB and its successor, the FSB, engaged in money laundering between 2010 and 2014 to move a believed $80 billion into western financial networks.
The Russian criminals used Deutsche Bank to funnel illegal Russian transfers into the US, Asia, and the European Union. The confidential report obtained by the Guardian indicates that Deutsche Bank was entirely unaware of the operations until the Organised Crime and Corruption Reporting Project (OCCRP) and the Guardian first reported on the story in 2017.
“Only with this intelligence received is it now possible for Deutsche Bank to start global investigations,” the report reads.