Deutsche Bank shares slide to a record low as bank is drawn into the Danske scandal
Shares of Deutsche Bank drop to record lows after the bank confirmed to Reuters it was involved in processing payments worth $150 billion for scandal-ridden Danske Bank
Deutsche Bank, Germany's leading money lender, is suffering a major share crisis after admitting it handled about €130bn of the suspicious money in the Danske Bank affair, which is the biggest money-laundering scandal in EU history. In a press statement, the bank said, "Deutsche Bank acted as correspondent bank for Danske Bank in Estonia. Our role was to process payments for Danske Bank.
We terminated this relationship in 2015 after identifying suspicious activity by its clients," A correspondent bank is a bank which acts as an intermediary for other banks in countries where they conduct small amounts of business. The ongoing scandal over Danske has now expanded globally. Police inquiries are now being carried out in Denmark, Estonia, the US and the United Kingdom. Industry leaders said that the revelations underlined the need for more accountability in the financial services sector.
Wael Al-Nahedh, CEO, Spearvest said, “This incident should serve as a reminder that financial services organisations remain accountable to shareholders and that bad practices will be met with serious repercussions. The reality is that many people feel the industry is quick to celebrate its achievements in terms of revenue growth, but slow to tackle occurrences of money laundering and fraud.”
Al-Nahedh continued, “Moving forward, all organisations in the financial services industry must work harder to demonstrate transparency and a more proactive approach to tackling corruption, to restore confidence and win back the trust of the wider public.”
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