«Despite knowing Mr. Epstein’s terrible criminal history, the Bank inexcusably failed to detect or prevent millions of dollars of suspicious transactions.”
Deutsche Bank is expected to pay $150 million for failure to provide proper oversight in the case of Jeffrey Epstein’s account, as well as two others. According to a press release by the Department of Financial Services in the state of New York, the settlement “marks the first enforcement action by a regulator against a financial institution for dealings with Jeffrey Epstein.”
Deutsche’s Superintendent of Financial Services Linda A. Lacewell said banks should tailor the monitoring of their customers’ activity according to any risk associated with the customer.
“In each of the cases that are being resolved today, Deutsche Bank failed to adequately monitor the activity of customers that the Bank itself deemed to be high risk,” she said. “In the case of Jeffrey Epstein in particular, despite knowing Mr. Epstein’s terrible criminal history, the Bank inexcusably failed to detect or prevent millions of dollars of suspicious transactions.”
Deutsche Bank responded to the news by expressing “deep regret” for its lack of action on behalf of Epstein until after he was arrested
“We acknowledge our error of onboarding Epstein in 2013 and the weaknesses in our processes.
