Regulators are probing Deutsche Bank over billions in suspicious transactions in another twist in the Danske Bank money laundering scandal

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  • The US Federal Reserve is investigating how Deutsche Bank handled billions suspicious payments from Danske Bank, as regulators try to unravel who was involved in one of the largest financial scandals in history.
  • Citing people familiar with the matter, Bloomberg said the probe is in early stages and is looking at Deutsche Bank properly monitored funds from an Estonian branch of Danske Bank.
  • In the Danske scandal, the Danish bank has said that many of the 200 billion euros in payments that flowed through the Estonian unit between 2007 and 2015 were suspicious.
  • You can follow all Business Insider’s coverage of the Danske Bank scandal here.

The US Federal Reserve is investigating how Deutsche Bank handled billions suspicious payments from Danske Bank, as regulators try to unravel who was involved in one of the largest financial scandals in history.

Bloomberg, citing people familiar with the matter, said the probe is in early stages and is looking at Deutsche Bank properly monitored funds from an Estonian branch of Danske Bank.

The German lender is under increasing pressure after a litany of allegations have helped torpedo the bank’s stock in the last year. Deutsche Bank’s offices were raided twice late last year in connection to an investigation about the bank’s role in the Panama Papers global money-laundering scandal.

In the Danske scandal, the Danish bank has said that many of the 200 billion euros in payments that flowed through the Estonian unit between 2007 and 2015 were suspicious. Most of the payments came from Estonia, Russia, Latvia and Cyprus and Britain, and shell companies were used to disguise identities.


Read more:
Danske Bank’s 200 billion euro money laundering scandal

Some estimate Danske could be on the hook for massive fines, even as high as 53 billion Danish krone ($US8.3 billion).

The Fed joins other regulators in asking questions about the scandal. The case is under criminal investigation in Denmark, Estonia and the United States. Britain’s National Crime Agency (NCA) has said it is investigating the use of UK-registered companies.

Responding to a request for comment from Business Insider, a Deutsche Bank representative said:

“There are no probes, but we have received several requests for information from regulators and law enforcement agencies around the world. It is not surprising at all that the investigating authorities and banks themselves have an interest in the Danske case and the lessons to be learned from it. Deutsche Bank continues to provide information to and cooperate with the investigating agencies.”


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