Deutsche Bank under pressure from UK watchdog

The UK financial regulator has criticised Deutsche Bank for failing to improve its compliance and anti-money laundering controls and warned the bank that it could be denied access to the UK market after Britain's exit from the European Union, the Financial Times reported.
Bank of England regulators have told the German lender they now require monthly updates, as opposed to typical quarterly meetings
Regulators are concerned that issues are still occurring four years after Deutsche was first censured and placed under special supervision by the Financial Conduct Authority for "serious" and "systemic" failings in its controls against money laundering, terrorist financing and sanctions breaches.
The Bank of England's Prudential Regulation Authority (PRA) and FCA have been monitoring Deutsche since 2015, and placed the lender under special supervision a year later.
Separately, German financial watchdog BaFin has opened a special audit into Deutsche's compliance with reporting requirements and other rules of conduct.
Both UK regulators have warned Deutsche that its post-Brexit reauthorisation could be delayed if improvements in compliance are not seen soon, the FT reported, although sources told the paper this remains a remote possibility.
As a non-British bank, Deutsche is reliant on EU passporting rights to operate in the UK, and is required to go through a reauthorisation process due to Brexit.
Deutsche Bank has been standing for several years due to gaps in anti-money laundering and other controls being increasingly targeted by regulators in the United States, Germany and other countries. In previous proceedings against money laundering violations, Deutsche Bank has already paid around $700m in US and UK fines.
In a statement, a Deutsche Bank spokesperson said it had tripled the number of staff in its anti-financial crime division since 2015. "The stability and security of our platform is clearly vital to us and we are allocating significant resources to this area to ensure this," they added.
The spokesperson declined to comment on Deutsche's interaction with regulators, but said it was "in close cooperation" with them.
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