[JURIST] US and UK regulators fined [press release] Deutsche Bank [corporate website] a combined $630 million in connection with a Russian money laundering scheme. Clients illegally moved [Reuters report] over $10 billion from Russia via shares that were bought and sold through Deutsche Bank’s offices in Moscow, London and New York, and regulators assert that bank officials repeatedly missed opportunities and to catch and stop the operations. Financial Services Superintendent Maria Vullo [official profile] of the New York Department of Financial Services [official website] supported the US fine by stating, “In today’s interconnected financial network, global financial institutions must be ever vigilant in the war against money laundering and other activities that can contribute to cybercrime and international terrorism.” These fines come less than a month after Deutsche Bank announced a $7.2 billion settlement [JURIST report] with the US Department of Justice regarding the sale of toxic mortgage securities that contributed to the 2008 financial crisis.
Several banks have faced legal challenges [JURIST backgrounder] stemming from the financial crisis of 2008. In September the US National Credit Union Administration (NCUA) [official website] said that the Royal Bank of Scotland Group (RBS) [official website] will pay $1.1 billion [JURIST report] after it allegedly solid toxic mortgaged-backed securities. In July 2014 Citigroup, Inc. agreed to pay $7 billion to settle a federal inquiry [JURIST report] into mortgage-backed securities sold by the bank prior to the country’s financial crisis. In November 2013 the DOJ announced that a $13 billion civil settlement [JURIST report] with JPMorgan & Co. has been finalized, resolving federal and state claims arising from the bank’s risky mortgage practices which helped lead to the 2008 financial crisis. In August 2013 the DOJ filed suit [JURIST report] against Bank of America (BOA) in the US District Court for the Western District of North Carolina, claiming the corporation misled investors about securitized loans worth more than $850 million.