The Strategist

Two ex-Deutsche Bank employees accused of bribing Saudi royal family

01/27/2020 - 10:27

German prosecutors are investigating two former Deutsche Bank employees, according to the Financial Times. The reason was an internal investigation of the bank, which showed that in 2011 and 2012 several of its employees bribed representatives of the royal family of Saudi Arabia in order to preserve them as customers.

Elliott Brown
Elliott Brown
The audit showed that a German bank spent a total of $ 1.1 million on bribes. It could be either cash payments or gifts like paid internships or a seminar in a Swiss ski resort. A total of four tranches were conducted through an offshore company registered in the British Virgin Islands. The company was founded by Deutsche Bank’s subsidiary, registered in Mauritius, and is owned by the wife of a financial advisor to the royal family.

The internal investigation itself was conducted from 2014 to 2016. As a result, the bank found out that more than ten employees of the asset management division took part in bribery. Immediately after completion of the audit, 12 employees were deprived of bonus payments, 6 people, later occupying senior positions at Barclays, UniCredit and Union Bancaire Privee, left the German bank. Two employees were charged with bribery and embezzlement of bank funds.