Deutsche Bank (NYSE: DB) was slammed with a $150 million fine by the New York State Department of Financial Services for its part in the Jeffery Epstein scandal. The bank was fined for its failure to notice the suspicious transactions being made by Epstein.
The State of New York, while looking into Epstein's finances at Deutsche Bank, where he had been a customer for five years, discovered countless suspicious transactions. According to the investigation, Deutsche Bank helped Epstein send millions of dollars to various individuals, including alleged conspirators. A particular matter of concern was a direct question from Epstein's lawyer, who queried the bank on how much he could withdraw without raising attention. In its conclusion, the Department of Financial Services found that Deutsche Bank had ignored the warning signs that Epstein was engaging in illicit activities.
Oddly enough, the company had considered Epstein a risky client, according to emails obtained from Deutsche Bank. The bank, however, conducted business with Epstein anyway, choosing the income he would bring as a customer over any reservations staff at the bank may have had. In 2015, the bank sent employees to confront Epstein regarding allegations of sex with underage youths. The employees sent to confront the financier were apparently "satisfied" by his response, and the matter ended there.
The Department also criticized the bank for its ties to Danske Bank (NASDAQ: DANSKE) and FBME bank. Danske Bank's Estonian branch was involved in a money laundering scandal, in which Deutsche Bank was an alleged partner, while FBME was found to be facilitating transactions for international crime groups and terrorist groups.
Deutsche Bank has apologized for its role in the scandal, issuing a statement saying that it recognized its "error of onboarding Epstein in 2013 and the weaknesses in our processes, and have learnt from our mistakes and shortcomings." And that "Our reputation is our most valuable asset and we deeply regret our association with Epstein."
Jeffery Epstein made world headlines after his July 2019 arrest on charges of sex trafficking. He was detained in New York City while a judge decided if an earlier plea deal still stood and was denied bail. Epstein was found dead in his cell weeks later of an apparent suicide. However, his lawyers have disputed official findings and claim he was murdered, prompting federal investigations that have yet to produce any conclusions.