FinCENFiles: How Deutsche Bank Let Crooked Clients Run Rampant
on the outskirts of London. Two weeks after he died, it was revealed that Perepilichnyy was linked to a multimillion-dollar tax fraud and had fled Russia, blowing the whistle on the scam.
To guard against financial crimes, banks have policies to “know your customer,” which means researching clients before taking them on. But an internal review focusing on know-your-customer protocols in the Moscow office found that bankers there failed to properly vet clients, even neglecting to determine if they were known criminals. The Moscow bankers could not even produce a list of who their clients were.
That summer, a team from his division turned its attention to Moscow; by fall the investigation had concluded. Despite all their colleagues’ documented concerns, the auditors gave Deutsche’s Moscow office a “green” rating, records reviewed by BuzzFeed News show. Deutsche declined requests to interview Sewing, but a Deutsche spokesperson said that he “had no direct or indirect involvement in the 2014 audit.”
On Jan. 29, a Deutsche executive overseeing compliance gave Bank of America officials assurances that their questions would be answered. The letter warned that “leadership on financial crime had been lacking for a considerable period of time” at the bank and that managers had put the pursuit of profit above its responsibilities to fight money laundering.
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