Deutsche Bank Securities Fined $4M for Delayed Suspicious Activity Reports

Deutsche Bank Securities, a subsidiary of Deutsche Bank AG, has been fined $4 million by the U.S. Securities and Exchange Commission (SEC) for delays in filing Suspicious Activity Reports (SARs).

Nature of the Penalty:

• The fine stems from violations of the Bank Secrecy Act, which mandates timely SAR filings to flag potential financial misconduct.
• Deutsche Bank Securities settled the charges without admitting or denying the SEC‘s findings.

Key Issues Identified:

• From April 2019 to March 2024, the broker-dealer showed delays in filing required SARs.
• At least two SARs were filed over two years late, limiting their utility to law enforcement.
• Sheldon L. Pollock, Associate Director of the SEC’s New York Regional Office, emphasized the importance of timely SARs, stating:
  

  “Even the best information collected from SARs is of limited use if it’s stale by the time it’s provided to law enforcement.”

Settlement Terms:

• Alongside the $4 million fine, Deutsche Bank Securities agreed to:
  • A cease-and-desist order.
  • Official censure.

Regulatory Focus:

• The SEC views timely SAR filing as crucial for:
  • Preventing misuse of financial systems.
  • Supporting law enforcement in detecting and addressing financial crime.