Deutsche Bank Tally of Suspect Russia Trades at $10 Billion

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December 22 2015

  • Beyond mirror trades, $4 billion in suspicious transactions
  • Regulators said to have received review results in September

Deutsche Bank AG has identified as much as $4 billion in suspicious transactions related to its Russian operations, in addition to $6 billion in so-called mirror trades it is examining, said several people with knowledge of the bank’s review of the matter.

That means the Frankfurt-based bank flagged as much as $10 billion in total trades that may not have been vetted for money laundering as clients moved money out of Russia. Previously unreported transactions under scrutiny include those in which trading in an account went consistently in one direction — primarily buy orders, for example — according to people familiar with the matter.

The mirror trades have drawn regulatory scrutiny in the U.K. and a criminal investigation in the U.S., adding to an increasing list of legal woes as co-Chief Executive Officer John Cryan seeks to restore investor confidence in Germany’s largest lender. Over the past year, the bank paid $258 million to settle a U.S. probe in which it admitted sanctions-law violations. It also paid $2.5 billion to settle U.S. and British investigations into the rigging of the London interbank offered rate, the highest among Libor cases to date after regulators accused the bank of foot-dragging in its investigations.