Germanfinancial regulator Bafin is unlikely to fine Deutsche Bank AG over alleged money launderingbreaches in Russia, butU.S. authorities and the U.K.'s Financial Conduct Authority may still demand €1billion or more, the Süddeutsche Zeitungreported Oct. 6.
Bafinis likely to merely ask Deutsche Bank to improve its risk management, having sofar found no evidence to support the money laundering allegations, thenewspaper said, citing unnamed sources. However, an insider told the paper thatthe U.S. Department of Justice, New York's Department of Financial Services andthe British FCA may have access to additional information and thus potentiallyimpose sizable penalties, "an insider" told Süddeutsche Zeitung.
U.S.regulators are involved because the transfers in question weredollar-denominated, while the FCA started to investigate because some of them were carried out in theU.K., the report added.
DeutscheBank's Russia-related legal issues are one of the reasons why the lender hascome under increasing pressurerecently.