The Federal Reserve is investigating billions of dollars in suspicious transactions involving Deutsche Bank AG and Denmark’s Danske Bank.
Investigators are examining whether Deutsche Bank’s U.S. operations adequately monitored funds sent through an Estonian branch of Danske Bank A/S, which the Danish bank has admitted handled up to $230 billion in dirty money, reported Bloomberg.
Two sources briefed on the probe confirmed the investigation, which Deutsche Bank denied in an emailed statement.
“(The bank) received several requests for information from regulators and law enforcement agencies around the world,” Deutsche Bank said. “It is not surprising at all that the investigating authorities and banks themselves have an interest in the Danske case and the lessons to be learned from it. Deutsche Bank continues to provide information to and cooperate with the investigating agencies.”
U.S. investigators want to determine whether Deutsche Bank met the required standard for detecting possible money laundering and alerting authorities to suspicious transactions.
A Danske Bank whistleblower revealed that much of the illicit flow of money passed through Deutsche Bank in the U.S., according to Bloomberg’s sources.
The U.S. Department of Justice and investigators in other countries are probing allegations of money laundering Danske Bank’s business in Estonia.
Deutsche Bank’s chief executive officer, Christian Sewing, said he launched an internal investigation into the allegations but so far has not seen evidence of wrongdoing.
Special counsel Robert Mueller reportedly issued a subpoena last year to Deustche Bank, which has loaned President Donald Trump ’s business an estimated $300 million prior to his election.