German financial regulator BaFin announced on Wednesday that it had imposed an administrative fine of 8.66 million euros (about $ 10 million) on Deutsche Bank AG.
The regulator alleged that Deutsche Bank failed to implement effective controls related to the Euro Interbank Offered Rate (EURIBOR), which is a benchmark used by the financial sector.
“As a supervised contributor to EURIBOR, the bank has sometimes not put in place effective prevention systems, controls and policies,” the regulator’s official announcement said.
Stressing the importance of its regulation, BaFin said it is there to ensure valid references and prevent manipulation.
“Contributors need to have effective systems and controls in place. Contributors are natural or legal persons who provide data for the determination of benchmarks. In the European Union, the Euro Interbank Offered Rate (EURIBOR) is used as a benchmark, for example, ”BaFin added.
Any violation of the benchmarks may result in a fine of up to ten percent of total turnover.
Accept order
Although Deutsche Bank was given the opportunity to appeal the regulatory fine, it accepted BaFin’s order. In addition, the lender has put in place measures to strengthen its controls around the benchmark, according to Reuters.
“Deutsche Bank has no indication that the issuance of a fine led to incorrect submissions to the lead administrator,” the bank said in a statement.
However, the latest regulatory move is another blow to the reputation of the German banking giant. It has been the subject of several regulatory and legal investigations over the past decade and was also summoned by BaFin last April to strengthen its measures to prevent money laundering.
Meanwhile, a few UK banks have recently faced astronomical fines, mainly for their failures in the fight against money laundering. NatWest was fined £ 265million, while HSBC was fined £ 64million. BaFin itself imposed a fine of € 290,000 on the Vanguard Group for non-compliance with the regulations.
German financial regulator BaFin announced on Wednesday that it had imposed an administrative fine of 8.66 million euros (about $ 10 million) on Deutsche Bank AG.
The regulator alleged that Deutsche Bank failed to implement effective controls related to the Euro Interbank Offered Rate (EURIBOR), which is a benchmark used by the financial sector.
“As a supervised contributor to EURIBOR, the bank has sometimes not put in place effective prevention systems, controls and policies,” the regulator’s official announcement said.
Stressing the importance of its regulation, BaFin said it is there to ensure valid references and prevent manipulation.
“Contributors need to have effective systems and controls in place. Contributors are natural or legal persons who provide data for the determination of benchmarks. In the European Union, the Euro Interbank Offered Rate (EURIBOR) is used as a benchmark, for example, ”BaFin added.
Any violation of the benchmarks may result in a fine of up to ten percent of total turnover.
Accept order
Although Deutsche Bank was given the opportunity to appeal the regulatory fine, it accepted BaFin’s order. In addition, the lender has put in place measures to strengthen its controls around the benchmark, according to Reuters.
“Deutsche Bank has no indication that the issuance of a fine led to incorrect submissions to the lead administrator,” the bank said in a statement.
However, the latest regulatory move is another blow to the reputation of the German banking giant. It has been the subject of several regulatory and legal investigations over the past decade and was also summoned by BaFin last April to strengthen its measures to prevent money laundering.
Meanwhile, a few UK banks have recently faced astronomical fines, mainly for their failures in the fight against money laundering. NatWest was fined £ 265million, while HSBC was fined £ 64million. BaFin itself imposed a fine of € 290,000 on the Vanguard Group for non-compliance with the regulations.
