New York’s Department of Financial Services fined Deutsche Bank $425 million on Monday for engaging in its notorious “mirror-trade” scheme that helped wealthy Russians launder $10 billion out of the country.
From 2011 to 2015, the bank, headed by CEO John Cryan, made complex trades that involved at least 12 companies buying stocks in Russia, according to a consent order.
A related company, which often had the same ownership, would then sell the same stocks in London to disguise the transaction and get around anti-money laundering laws.
“This Russian mirror-trading scheme occurred while the bank was on clear notice of serious and widespread compliance issues dating back a decade,” DFS Superintendent Maria T. Vullo said.
The UK’s Financial Conduct Authority is expected to enact a separate fine. The bank has also agreed to install an independent monitor.
“As previously disclosed, Deutsche Bank is cooperating with other regulators and law enforcement authorities, which have their own ongoing investigations into these trades,” the bank said.