Three news to start your week: February 26
Deutsche Bank threatened with fines over flawed money laundering controls
(Financial Times)
Deutsche Bank, Germany's financial institution, faces the risk of a fine from the country's financial watchdog for its inability to rectify weaknesses in its anti-money laundering measures. This development adds to the challenges currently faced by the bank's CEO, Christian Sewing.
Sewing committed to addressing Deutsche Bank's control issues, allocating over €2bn for internal control improvements. However, the bank admitted it had only "partially completed" the required transaction monitoring system enhancements.
Deutsche Bank was fined $186 million last year for failing to address unsafe banking practices despite previous commitments dating back to 2015. In 2022, the supervisory board capped Sewing's bonus and nine other management board members over the delays in improving internal controls.
New York jury begins deliberations in NRA civil corruption trial
(The Guardian)
On Friday, a jury in New York State started deliberating in the civil corruption trial involving the National Rifle Association and its former long-time leader, Wayne LaPierre.
The jury began deliberations the day after a lawyer from the New York attorney general's office accused the NRA and LaPierre of being caught "with their hands in the cookie jar." The accusations summarize that the gun rights group's executives spent millions of dollars on private flights, vacations, and other extravagant perks.
The attorney representing LaPierre, however, dismissed the case as a politically motivated witch-hunt orchestrated by Letitia James, the attorney general of New York. The NRA's lawyer stated that the organization could not be responsible for LaPierre's actions.
Former Bank of China chief charged with bribery, illegal loan issuance
(Nikkei Asia)
Liu Liange, the ex-chairman of the Bank of China, is facing bribery charges and unlawful granting of loans. This adds him to the ever-increasing roster of financial veterans who have lost their standing in Beijing's relentless campaign against corruption.
Prosecutors indicted Liu for allegedly accepting substantial sums of money as bribes in return for granting promotions and providing financial advantages during his time working at the BOC and the Export-Import Bank of China (Exim Bank).
According to prosecutors, Liu disregarded regulations by approving an "exceedingly large quantity" of loans, leading to substantial losses.
According to Caixin, Liu is connected to the case of Li Li, the former president of Exim Bank's Beijing branch, who has been under investigation since January 2022. Li pleaded guilty to charges of taking almost 100 million yuan ($14 million) in bribes in March 2023. A verdict is still pending.
