Lubomir Tassev
Activist Post
The international financial establishment is known to express concern about the risks of money laundering when the crypto space is mentioned. A string of scandals indicates, however, that traditional banks are not only susceptible to the phenomenon but sometimes complicit, whether knowingly or inadvertently. New chapters have been added to the saga over the last few months that are hurting banks, bankers and their clients.
The changes come after a failed merger with Germany’s Commerzbank a couple of months ago, which was eventually deemed too risky by the teams of both banks. It did not materialize, despite the support of the federal government in Berlin.
Many of the layoffs are expected to affect Deutsche Bank’s investment banking offices in London and New York. According to a BBC report, the German bank has 8,000 employees in the British capital. And the 20,000 jobs that are likely to be cut represent a fifth of the institution’s global staff.
Besides persistent problems with its investment business and unsatisfactory financial results, the banking giant has been suffering from its involvement in money laundering scandals. In November, 2018 its headquarters and other offices in Frankfurt were raided by law enforcement officers and representatives of the German tax authority.
During the operation, government agents, including prosecutors, were trying to establish whether Deutsche Bank employees assisted clients in setting up offshore accounts used to transfer illicit funds. The bank was connected to the big money laundering scandal at Danske Bank last year, which revealed that around €200 billion (around $230 billion) has flowed through its Estonian branch from suspicious accounts from the former Soviet space.
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Activist Post
The international financial establishment is known to express concern about the risks of money laundering when the crypto space is mentioned. A string of scandals indicates, however, that traditional banks are not only susceptible to the phenomenon but sometimes complicit, whether knowingly or inadvertently. New chapters have been added to the saga over the last few months that are hurting banks, bankers and their clients.
Deutsche Bank Prepares to Lay Off 20,000 Employees
Deutsche Bank, one of the biggest names associated with money laundering accusations, has been dogged by many problems during the past year. The leading German financial institution is now preparing for a major reorganization that may include the sacking of up to 20,000 employees, if the plan is approved at the end of this week.
The changes come after a failed merger with Germany’s Commerzbank a couple of months ago, which was eventually deemed too risky by the teams of both banks. It did not materialize, despite the support of the federal government in Berlin.
Many of the layoffs are expected to affect Deutsche Bank’s investment banking offices in London and New York. According to a BBC report, the German bank has 8,000 employees in the British capital. And the 20,000 jobs that are likely to be cut represent a fifth of the institution’s global staff.
Besides persistent problems with its investment business and unsatisfactory financial results, the banking giant has been suffering from its involvement in money laundering scandals. In November, 2018 its headquarters and other offices in Frankfurt were raided by law enforcement officers and representatives of the German tax authority.
During the operation, government agents, including prosecutors, were trying to establish whether Deutsche Bank employees assisted clients in setting up offshore accounts used to transfer illicit funds. The bank was connected to the big money laundering scandal at Danske Bank last year, which revealed that around €200 billion (around $230 billion) has flowed through its Estonian branch from suspicious accounts from the former Soviet space.
Read more
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