SEC Fines Deutsche Bank $4 Million for Late Filing of Suspicious Activity Reports
The Securities and Exchange Commission recently fined Deutsche Bank Securities Inc., a subsidiary of Deutsche Bank AG, $4 million for failing to file certain Suspicious Activity Reports (SARs) in a timely manner.
It’s important to note that broker-dealers like Deutsche Bank Securities are required to file SARs for transactions that they suspect involve funds from illegal activities, lack a business purpose, or are intended to facilitate criminal activity as per the Bank Secrecy Act.
Despite receiving requests related to law enforcement investigations, the SEC found that Deutsche Bank Securities failed to complete the required SARs investigations in a timely manner from April 2019 to March 2024. In some cases, it took the bank over two years to file the SARs, which is concerning.
By holding Deutsche Bank Securities accountable, the SEC is emphasizing the importance of timely reporting of SARs. The SEC’s order found violations of the Securities Exchange Act and Rule 17a-8. Deutsche Bank Securities agreed to pay a civil penalty, among other measures, without admitting or denying the SEC’s findings.
The investigation was overseen by the SEC’s New York Regional Office, with assistance from other regional offices and departments. It serves as a reminder to all market registrants that the prompt filing of SARs is critical for law enforcement purposes.
