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Deutsche Bank fined for alleged bribery

The US Securities and Exchange Commission (SEC) has fined the bank for falsifying payment documentation in relation to third-party intermediaries.

Deutsche Bank has agreed to pay more than US$120 million for violations of the Foreign Corrupt Practices Act (FCPA).

According to the SEC, the bank engaged foreign officials, their relatives and associates as third-party intermediaries, business development consultants and finders to obtain and retain global business.

The SEC order found that Deutsche Bank lacked sufficient internal accounting controls for payment of the intermediaries, resulting in approximately US $7 million in bribe payments or payments for unknown, undocumented, or unauthorised services.

The regulator alleged the payments were incorrectly recorded as legitimate business expenses and involved invoices and documentation falsified by Deutsche Bank employees.

The bank agreed to a cease-and-desist order and to pay US$43 million to settle the charges and a US$79 million criminal penalty.

"While third parties can assist in legitimate business development activities, it is critical that companies have sufficient internal accounting controls in place to prevent payments to third parties in furtherance of improper purposes," SEC enforcement division's FCPA unit chief Chares Cain said.

Read more: SECDeutsche BankChares CainForeign Corrupt Practices Act
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