PRESS: Deutsche Bank Payments To Saudi Royal Adviser Probed - FT

(Alliance News) - Deutsche Bank AG paid USD1.1 million to secure the wealth management business ...

Alliance News 27 January, 2020 | 6:55AM
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(Alliance News) - Deutsche Bank AG paid USD1.1 million to secure the wealth management business of a senior Saudi royal, the Financial Times reported on Sunday, citing an internal probe that led to two former staff being reported to criminal prosecutors.

The scandal in the lender's wealth management division, which involved payments to the wife of the royal’s financial adviser, highlights the legal and reputational risks to a unit that is central to the German bank's turnaround hopes, the FT noted.

The money transfers were arranged in 2011 and 2012 alongside other perks for the adviser's family, including an internship and a seminar at a Swiss ski resort, according to the results of the probe, seen by FT.

According FT, an internal investigation between 2014 and 2016, code named Project Dastan, found the Deutsche employees involved were trying to retain the wealthy client and win additional business.

Some of the pay and perks violated Deutsche's policies on anti-corruption and gifts and entertainment, the probe found.

Deutsche reported two former Germany-based employees to criminal prosecutors in Frankfurt for suspected bribery and embezzlement, the FT reported.

Deutsche Bank shares closed 1.9% higher in Frankfurt at EUR7.83 on Friday.

By Loreta Juodagalvyte;

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Deutsche Bank AG 5.60 EUR -6.22

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