The U.S. Securities and Exchange Commission imposed a fine of more than $16 million on Deutsche Bank AG in connection with the alleged unlawful hiring process at the German lender.
The regulator said Deutsche Bank allegedly hired relatives of foreign government officials in Russia and Asia-Pacific to clinch or maintain business relationships, breaching a law on books and records and internal accounting controls. The so-called "referral hires" were also found to have dodged the bank's merit-based hiring system, the regulator said Aug. 22.
The bank neither admitted nor denied the allegations when it agreed to pay the fine, which comprises $10.8 million in disgorgement, $2.4 million in prejudgement interest and $3 million in civil penalty, the SEC noted.
A Deutsche Bank spokesperson told S&P Global Market Intelligence that the bank has substantially cooperated with the SEC during its inquiry and has now put in place remedial measures to bolster its hiring system.
