Deutsche Bank alerts regulators to potential Russia sanctions lapses
Stay informed with free updates
Simply sign up to the European banks myFT Digest — delivered directly to your inbox.
Deutsche Bank has reported itself to financial regulators over potential breaches of EU sanctions rules involving Russian clients, months after its Frankfurt headquarters were raided as part of a separate money-laundering investigation linked to Russian oligarch Roman Abramovich.
The German lender uncovered cases within its retail unit in which the bank had accepted deposits of more than €100,000 from individuals subject to EU sanctions restrictions, according to a person familiar with the matter.
The cases were discovered after the bank established a task force to check its controls following a tightening of Germany’s sanctions enforcement regime in February.
The changes, which were driven by an EU directive, introduced stricter criminal penalties, accelerated enforcement and ended grace periods, requiring banks to act more swiftly to identify and block potentially prohibited transactions.
EU sanctions block banks from accepting deposits above €100,000 from Russian nationals, residents or entities established in Russia.
Deutsche said it “continuously reviews” its sanctions compliance processes in the normal course of business and takes action when weaknesses are identified, including measures to “adapt and improve” controls.
The bank added that it “inform[s] the relevant supervisory authorities proactively” but declined to comment further. The Bundesbank, which is responsible for sanctions enforcement in Germany, declined to comment.
Deutsche's issues were first reported by German outlet Finanz-Szene.
The episode follows a raid by German prosecutors on Deutsche’s Frankfurt headquarters in January, part of an investigation into suspected money laundering linked to Abramovich. The searches took place a day before the bank reported record annual results.
That probe relates to the bank’s handling of transactions between 2013 and 2018 and whether it was too slow to file a suspicious activity report, according to chief executive Christian Sewing. It focused on business ties to companies linked to Abramovich, a person familiar with the matter told the FT at the time.
Abramovich, who has been under EU sanctions since 2022, has denied wrongdoing.
