Deutsche Bank glitch blocked reporting of suspicious transactions
Source: Financial Times
A software glitch at Deutsche Bank has for almost a decade prevented some potentially suspicious transactions from being flagged to law enforcement authorities, Germany's biggest bank has discovered.
The revelation is a further blow to the reputation of Deutsche, which has paid hundreds of millions of dollars in fines for breaching money laundering and sanction rules and is still being investigated by authorities around the world for alleged similar wrongdoing.
Read more: https://www.ft.com/content/d537f416-7c71-11e9-81d2-f785092ab560
The "glitch" may have been in place for over a decade.
Post #8 below contains a link to the Market Watch story on this.
And from the Wall Street Journal:
https://www.wsj.com/articles/deutsche-bank-finds-error-in-program-that-scans-for-money-laundering-compliance-risks-11558530620?modnwsrl_markets_main&cx_refModulenwsrl
The Deutsche Bank program in question "was configured erroneously with two out of 121 parameters defined incorrectly," the bank said. "Deutsche Bank is working on correcting the error as quickly as possible and is in close contact with the regulators."
The problem was discovered by employees in Europe and reported to regulators recently, and the bank is still investigating the problem, the person said. It is unclear what companies, countries or types of cash flows were affected by the transaction-review issues. Deutsche Bank found the problem during its latest revamp of money-laundering systems, which it started late last year.
pandr32
(11,419 posts)Corgigal
(9,291 posts)Chain the building, after telling the workers to go home. Its our bank now.
The Velveteen Ocelot
(115,065 posts)suffragette
(12,232 posts)SamKnause
(13,009 posts)JustABozoOnThisBus
(23,266 posts)A "bug" prevented the reporting? Right.
yuiyoshida
(41,736 posts)uhuh
neohippie
(1,140 posts)Hmmm not so much a glitch as program was configured incorrectly, how convenient!
https://www.marketwatch.com/story/deutsche-banks-money-laundering-scan-has-glitch-2019-05-22
The glitch, which might have been in place for close to a decade, hampered a program that scans payments involving corporate clients after they pass through the bank so it can flag suspicious patterns to regulators, a person familiar with the matter said.
Regulators rely on such information, gathered from a wide range of financial companies, to prevent money laundering and terrorism funding through the global banking system.
The Deutsche Bank program in question "was configured erroneously with two out of 121 parameters defined incorrectly," it said in a statement Wednesday. "Deutsche Bank is working on correcting the error as quickly as possible and is in close contact with the regulators."
The problem was discovered by employees in Europe and reported to regulators recently, and the bank is still investigating the problem, the person said. It's unclear what companies, countries or types of cash flows were affected by the transaction-review issues.
pnwmom
(108,914 posts)Ghost Dog
(16,881 posts)exactly?
Botany
(70,219 posts)bluestarone
(16,641 posts)Love it!
Response to pnwmom (Original post)
padah513 This message was self-deleted by its author.
suffragette
(12,232 posts)https://www.marketwatch.com/story/libor-probe-deutsche-bank-failed-to-keep-chats-2015-07-31
The bank is working to recover the records from its systems but might have permanently lost an unknown number of chats dating back to 2005, the people said.
~~~
The bank's lawyers told officials at the department that the failure to archive was caused by an unintentional software glitch and that it learned about the error after the settlement, two people familiar with the matter said. The purely internal messaging system, called "DB Chat," was used by employees going back more than a decade.
DB Chat, one of several internal Deutsche Bank messaging systems, has been predominantly used by non-trading staff, including technology and other back-office staff, often in groups, people familiar with the matter said. But users included people whose email accounts and data were investigated during the Libor probe, as well as a handful of senior managers within the bank, one of the people said. The platform was also used by some members of the bank's compliance and legal staff, according to one of the people.
pnwmom
(108,914 posts)Ford_Prefect
(7,772 posts)who approved the software and reviewed it for accuracy.
suffragette
(12,232 posts)mitch96
(13,766 posts)or the "glitch" Volkswagen had in the emissions software on the diesel... Four wheels moving? pollute like crazy. Two wheels moving? emissions in line.... Glitch my ass... typical corporate bullshit...
m
suffragette
(12,232 posts)Jarqui
(10,094 posts)even Deutsche bank thinks Trump & Kushner did banking transactions that looked suspicious of money laundering ...
... all the more reason for Congress to get the records from Deutsche bank, Trump's tax returns and Trump's records with his accounting firm.
I don't think money laundering for the Russians is going to play well with Trump's base.
What's next? Trump disobeys a court order and pardons himself for doing so?
MFGsunny
(2,356 posts)ScratchCat
(1,942 posts)has not been shut down over the past decade should tell you all you need to know about who controls this country. Dollars to donuts, every other congresscritter, wall street huxter and politically connected real estate scammer have money flowing through this bank.
Like someone implied above, if the bank is shirking the law that says you must report certain payments, why the hell are they even being allowed to operate in this country? Why would they not be shut down immediately?
ToxMarz
(2,146 posts)I was a feature.
catbyte
(34,122 posts)old guy
(3,281 posts)akraven
(1,975 posts)Firestorm49
(3,995 posts)Kid Berwyn
(14,522 posts)Id call it a feature.
Maeve
(42,199 posts)Merlot
(9,693 posts)Gee, wonder how that "glitch" got there. How convenient that a bank known for money laundering and catering to drug cartels could have such a "glitch."
MGKrebs
(8,138 posts)Are you kidding me? No audit, no analysis, no chart, no spreadsheet, no clerk/accountant/bean counter noticed anything amiss for TEN YEARS?
Lock them up.