Deutsche Bank fined €23m by German regulator BaFin
Germany’s Federal Financial Supervisory Authority (BaFin) has fined the country’s largest bank, Deutsche Bank, a total of €23.05 million in three regulatory offence proceedings.
Deutsche Bank fined €23.05 million by BaFin
According to a statement from BaFin, a €14.8 million fine was imposed for the bank’s breach of “organisational requirements” under the German Securities Trading Act in connection with the sale of currency derivatives in Spain.
“Following allegations relating to the sale of currency derivatives in Spain, Deutsche Bank AG took too long to investigate the infringements and remedy the shortcomings,” BaFin claims.
The regulator continues: “The sale of derivatives led to sanctioning proceedings initiated by the Spanish National Securities Market Commission (CNMV). The company did not make appropriate organisational arrangements to speed up the investigation of the breaches of the law and to implement measures to remedy the situation.”
BaFin also fined Deutsche Bank €4.6 million claiming its Postbank business “disregarded the obligation to record investment advice”.
“Exceptions to this rule were granted during the COVID-19 pandemic. After they expired, however, the company at times failed to take measures to ensure that the content of investment advice given by telephone was once again electronically recorded,” the regulator says.
Moreover, BaFin claims Deutsche Bank’s Postbank business “repeatedly failed to comply with the requirements of the German Payment Accounts Act” regarding the account switching service, for which the regulator imposed a fine of €3.65 million.
In its statement, BaFin claims that “applications submitted to Postbank for the account switching service under the ZKG were not processed or were only processed with a delay in multiple cases”.
In a statement sent to FinTech Futures, Deutsche Bank says: “As communicated by BaFin, Deutsche Bank has accepted a fine of approximately 23 million euros in three regulatory offence proceedings. This fine is completely covered by existing provisions and will not impact 2025 financials. These proceedings are now concluded.
“Shortcomings included delays in the internal investigation of incidents related to some financial derivatives transactions in Spain; prolonged application of exemptions related to the COVID-19 pandemic for telephone consultations with investment advisors at Postbank; and deficiencies in the account switching service at Postbank up to August 2023, during the Unity migration.
“Deutsche Bank has fully cooperated with BaFin in all matters. Additionally, processes in the affected areas have been improved and controls have been strengthened.”
