The Strategist

U.S Department of Justice probes Deutsche Bank on money laundering charges


08/04/2015 - 07:33



The U.S Department of Justice is probing money laundering charges against Deutsche Bank who may have out back-to-back transactions, also known as mirror transactions, on behalf of its Russian clients.



Basing itself on reports from people who are familiar with the matter, the United States’ Department of Justice will begin investigation into trade related transactions that Germany's Deutsche Bank AG have carried out on behalf of its Russian clienteles.
 
What is in question are, what in trading parlance is termed as mirror trades, where for example the Bank’s Russian clients buys stocks in roubles and simultaneously a similar transaction is carried out in London, in which the same stocks are bought in U.S dollars, thus its coinage – mirror trades. In this way, funds move across international borders and the authorities are no wiser; or so one would think.
 
Last month, however, The New York State Department of Financial Services (DFS) sought details of possible money laundering transactions from Deutsche Bank on some of its Russian clients. As per a source familiar with the matter these transactions could exceed 6 billion.
 
Deutsche Bank has decided to stay mum on this matter and when asked for comments, it redirected all queries to it earlier published statement on the issue along with its annual report.
 
Source(s): Reuters.com, Bloomberg.com