Deutsche Bank will pay $150 million in settlements over charges that the German bank “failed to properly monitor” convicted sex offender Jeffrey Epstein’s account activity.
The New York Department of Financial Services said in a Tuesday press release that the bank did not do enough to monitor the late sex offender’s accounts, though the bank was aware that Epstein had served time in prison after pleading guilty to procuring sex from a minor.
“The Bank’s fundamental failure was that, although the Bank properly classified Mr. Epstein as high-risk, the Bank failed to scrutinize the activity in the accounts for the kinds of activity that were obviously implicated by Mr. Epstein’s past,” the New York Department of Financial Services said in the consent order.
Deutsche Bank was also aware that “there were public allegations that his conduct was facilitated by several named co-conspirators,” according to the consent order. (RELATED: Prosecutors, Prison Officials Refuse To Say How They Will Protect Ghislaine Maxwell)
“Despite this knowledge, the Bank did little or nothing to inquire into or block numerous payments to named co-conspirators, and to or on behalf of numerous young women, or to inquire how Mr. Epstein was using, on average, more than $200,000 per year in cash,” the order says.
Acting US Attorney for the Southern District of New York, Audrey Strauss, announces charges against Ghislaine Maxwell during a July 2, 2020, press conference in New York City. (JOHANNES EISELE/AFP via Getty Images)
Deutsche Bank, which ended its relationship with Epstein in December 2018, has come under fire over anti-money laundering protocol violations in the past, Politico reports.
A spokesperson for the German bank said in a statement that as soon as Epstein was arrested, “we contacted law enforcement and offered our full assistance with their investigation,” according to Politico. (RELATED: Alan Dershowitz Urges ‘Everyone’ To ‘Keep An Open Mind’ About Alleged Epstein Madam Ghislaine Maxwell)
“We have been fully transparent and have addressed these matters with our regulator, adjusted our risk tolerance and systematically tackled the issues,” the spokesperson added. “We deeply regret our association with Epstein.”
Epstein died of apparent suicide in a federal jail in New York City in August 2019 after he was arrested last summer.
In 2008, he pleaded guilty to soliciting a minor for prostitution. Attorney Alan Dershowitz helped negotiate a plea deal that gave federal immunity to Epstein and his co-conspirators, the Miami Herald reported. Epstein only served 13 months in jail in Palm Beach with liberal work release.
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