Deutsche Bank faces criminal investigation over money-laundering issue

Deutsche bank has been accused of money-laundering charges imposed by a former Bank employee. Tammy McFadden, a former anti-money laundering specialist at the German Bank, told The New York Times in May that she had informed the bank about a series of suspicious transactions, including the ones from the Jared Kushner’s family real estate company to Russian individuals in 2016 and asked the Treasury Department to be watchful of the issue. She complained that the bank ignored her suggestion.

Jared Kushner, the US president’s son-in-law, was CEO of Kushner Cos. but after the election, he resigned from the position to become one of Donald Trump’s senior advisers.

McFadden severely criticized the bank’s practices and said that it has a history of brushing aside proposed suspicious activity reports of its high-profile clients.

In response to the Times story published on Wednesday, FBI initiated a criminal investigation against the bank and also contacted a lawyer, Brian McCafferty, to provide legal assistance to McFadden. The investigation includes review of the bank’s handling of suspicious transactions reports. Transactions are usually examined at various levels at banks and a lot of them are ultimately not sent to the Treasury. FBI would also examine other banks to find out how illicit funds flow through the US financial system.

Besides McFadden, The Times also interacted with a few former and current employees of the bank. It found out that several transactions involving President Donald Trump’s company were marked at the bank as suspicious but were not transferred on to the Treasury Department.

Commenting on the matter, Kushner Cos. released a statement saying “any allegations regarding Deutsche Bank’s relationship with Kushner Companies which involved money laundering is completely made up and totally false.”

A spokesperson of the Deutsche Bank declined to comment on the Times report, but said: “We remain committed to cooperating with authorised investigations.”

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