• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      Sustainable Investment Festival 2021

      The Sustainable Investment Festival will run online from 22-25 June and will include thought-provoking presentations from renowned keynote speakers, innovative breakout events and sessions specifically tailored to meet the information needs of fund selectors, financial advisers, pension consultants, trustees and scheme managers.

      • Date: 22 Jun 2021
      • Online, Online
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Regulation

Deutsche Bank fined $16m for hiring 'unqualified relatives' of politicians

Deutsche Bank fined $16m for hiring 'unqualified relatives' of politicians
  • Pedro Gonçalves
  • @PeterHSG
  • 23 August 2019
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

Deutsche Bank has agreed to pay more than $16m to the US Securities and Exchange Commission to settle charges that it hired "poorly or unqualified" relatives of foreign officials in Asia and Russia.

The Securities and Exchange Commission (SEC) alleged that Germany's largest lender had hired relatives of foreign government officials in order to win or retain business in Asia and Russia at their request, in violation of the Foreign Corrupt Practices Act.

From 2006 to 2014, Deutsche Bank gave jobs to the children of rich and powerful officials "as a personal benefit to the officials in order to improperly influence them to assist the bank in obtaining or retaining business", the SEC alleged.

Related articles

  • Barclays pays SEC $6.3m to settle Asian hiring case
  • Julius Baer employees to face probe by Swiss regulator
  • Julius Baer employees to face probe by Swiss regulator
  • Deutsche Bank WM hires head of China onshore wealth

The breakdown of the $16.2m settlement amount included: $3m in civil penalty, $10.8m in disgorgement and $2.4m in interest. Under the settlement, Deutsche Bank did not admit or deny the findings, the SEC added, but has since taken "extensive remedial measures" to fix internal controls.

According to the SEC, between at least 2006 and 2014, Deutsche Bank employed poorly or unqualified relatives of executives working at state-owned enterprises, with the "primary goal" of generating business for the company, such as initial public offerings.

The SEC also found that Deutsche Bank employees created false books and records that concealed corrupt hiring practices and failed to accurately document and record certain related expenses, violating books and records and internal accounting controls rules.

In one case, a Russian hired by the bank's London office performed so poorly that a human resource employee called him "a liability to the reputation of the program, if not the firm," the regulator quoted.

US authorities have made various charges against bank's hiring malpractices of relatives of Asian officials, especially the children of senior Chinese politicians or 'princelings' which have resulted in fines far exceeding Deutsche Bank's latest figure.

In 2018, Credit Suisse was fined $77m for such charges and in 2016, J.P. Morgan was slapped with a $264m.

 

Subscribe to International Investment's free, twice-daily, newsletter 

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Regulation
  • deutsche bank
  • Asia
  • Russia
  • SEC

More on Regulation

Singapore regulator fines Bank J Safra Sarasin S$1m

  • Regulation
  • 16 April 2021
UK regulator bans financial adviser for dishonesty

  • Regulation
  • 15 April 2021
Quilter urges Government crackdown on investment scams in Online Safety Bill

  • Regulation
  • 15 April 2021
Collapse of Jersey-based Football Index faces new UK probe

  • Regulation
  • 13 April 2021
US regulator targets 'opaque' money laundering in beneficial ownership notice

  • Regulation
  • 07 April 2021
Back to Top

Most read

First digital only bank in UAE set to go live
First digital only bank in UAE set to go live
Standard Chartered names Singapore heavy hitter for global role
Standard Chartered names Singapore heavy hitter for global role
UK regulator bans financial adviser for dishonesty
UK regulator bans financial adviser for dishonesty
Bitcoin hits record high on cusp of Coinbase IPO
Bitcoin hits record high on cusp of Coinbase IPO
DeVere UK and Fidelius enter strategic partnership
DeVere UK and Fidelius enter strategic partnership
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading