Deutsche Bank pays $16 million settlement for non-compliance to U.S. corruption laws

Deutsche Bank has now taken several remedial measures to mitigate the issues revolving around its hiring practices and internal accounting controls.

In a statement the Securities and Exchange Commission (SEC) stated, Deutsche Bank has agreed to pay more than $16 million in order to settle charges related to non-compliance of U.S. corruption laws.

Deutsche Bank has been accused of hiring relatives of foreign government officials in order to win and/or retain contracts.

The U.S. regulator has alleged that Deutsche Bank, Germany’s largest lender, had hired poorly qualified relatives of foreign officials in Asia and Russia at their request, in violation of the Foreign Corrupt Practices Act.

As part of the settlement deal, Deutsche Bank neither admitted nor denied the allegations, said the SEC.

“Deutsche Bank provided substantial cooperation to the SEC in its inquiry and has implemented numerous remedial measures to improve the bank’s hiring practices,” said a spokesman for Deutsche Bank in a statement.

The SEC stated, Deutsche Bank has taken extensive remedial measures to fix its hiring compliance and internal accounting controls.

The SEC had alleged, Deutsche Bank had employed poorly or unqualified relatives of executives working at state-owned enterprises in the U.S., with the “primary goal” of generating business for the company, such as initial public offerings, between 2006 to 2014.

The U.S. regulator also found that the bank had created false records and books to conceal its hiring practices and failed to accurately document and record certain related expenses, thus violating books and records and internal accounting controls rules.

In a statement the SEC said, the $16 million settlement includes disgorgement of $10.8 million, interest of $2.4 million and a $3 million civil penalty.



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