Deutsche Bank Strikes a Deal on Bribery
In this article (4)
Deutsche Bank will look to avoid U.S. charges of bribery and manipulation of precious metals markets by making a payment totaling nearly $125 million.
Almost the entire payout relates to charges against the German lender over its dealings in Saudi Arabia, Abu Dhabi, China, and Italy, according to court papers, with a criminal fine making up two-thirds of the total sum, according to a court hearing in New York.
Prosecutors claim that Deutsche Bank violated the federal Foreign Corrupt Practices Act (FCPA) which prohibits firms with U.S. operations from paying bribes elsewhere.
Deutsche Bank engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others to win and retain lucrative business projects said a statement from Acting U.S. Attorney Seth DuCharme in Brooklyn.
According to prosecutors, Deutsche Bank allegedly disguised bribes as «referral fees» paid to «decision-makers» in Saudi Arabia and millions of dollars in consultancy fees to an intermediary for an Abu Dhabi official.
The bank was also accused of making similar payments to a Chinese government entity to help establish a clean energy investment fund and a tax judge in Italy for referring wealthy clients.
With regards to precious metals market manipulation, Deutsche Bank was accused of placing fraudulent trades to lure other stop buy and sell futures contracts at price levels they normally would not engage.
Questions & Answers
Q.What is the total amount Deutsche Bank has agreed to pay to avoid US charges?
What is the total amount Deutsche Bank has agreed to pay to avoid US charges?
Deutsche Bank will make a payment totalling nearly $125 million. A criminal fine accounts for two-thirds of this sum, with the remainder related to charges of bribery and market manipulation.
Q.Which specific countries are mentioned in connection with Deutsche Bank's alleged bribery activities?
Which specific countries are mentioned in connection with Deutsche Bank's alleged bribery activities?
The alleged bribery activities primarily relate to dealings in Saudi Arabia, Abu Dhabi, China, and Italy. These dealings account for almost the entire payout Deutsche Bank is making.
Q.What methods did Deutsche Bank allegedly use to conceal the payments made to foreign officials?
What methods did Deutsche Bank allegedly use to conceal the payments made to foreign officials?
Prosecutors claim Deutsche Bank disguised bribes as "referral fees" and millions of dollars in consultancy fees. These were paid to consultants and an intermediary who acted as conduits for bribes to foreign officials.
Reader pulse
Will this fine deter similar practices?
19,682 votes so far