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pnwmom

(108,914 posts)
Wed May 22, 2019, 01:56 PM May 2019

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.
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Deutsche Bank glitch blocked reporting of suspicious transactions (Original Post) pnwmom May 2019 OP
Paywall, but the glitch sure as heck seems convenient pandr32 May 2019 #1
Shut the F up. Corgigal May 2019 #2
What a very convenient "glitch." The Velveteen Ocelot May 2019 #3
Was just about to post the same comment. Very convenient, indeed. suffragette May 2019 #4
Bullshit. SamKnause May 2019 #5
That's not a software bug, that's an executive in a plush office. JustABozoOnThisBus May 2019 #6
is that their excuse? yuiyoshida May 2019 #7
here's another link to story neohippie May 2019 #8
Thanks! Yes, some "glitch." pnwmom May 2019 #9
Please sir, which parameters Ghost Dog May 2020 #33
Meet Mr. Glitch Botany May 2019 #10
So TRUE! bluestarone May 2019 #21
This message was self-deleted by its author padah513 May 2019 #11
Similar to the "glitch" during Libor investigation. suffragette May 2019 #12
Seems to be a pattern, doesn't it? nt pnwmom May 2019 #13
One might almost conclude it was a practice of the overseers within the bank Ford_Prefect May 2019 #17
Yes, it does. Very convenient these glitches that protect shady senior staff and clients. suffragette May 2019 #19
"Similar to the "glitch" during Libor investigation." mitch96 May 2019 #27
Exactly so. suffragette May 2019 #28
However, the story would tend to back up the report that Jarqui May 2019 #14
When "glitches" are both well designed and perfectly targeted. LAME! MFGsunny May 2019 #15
The fact that this bank ScratchCat May 2019 #16
It wasn't a glitch ToxMarz May 2019 #18
"Glitch." LOL catbyte May 2019 #20
"My dog ate the report" is a better excuse! old guy May 2019 #22
This is up on the level of "my dog ate it". akraven May 2019 #23
How conveeeeeeeeeeeeenient! Firestorm49 May 2019 #24
Is it really a glitch when it means billions for Deutsche Bank? Kid Berwyn May 2019 #25
Not a bug--it was a feature Maeve May 2019 #26
Fixed it: Deutsche Bank "glitch" blocked reporting of suspicious transactions. Merlot May 2019 #29
10. effing. years? MGKrebs May 2019 #30
This is such outrageous bullshit. Nobody with a brain believes this. stuffmatters May 2019 #31
Its not a bug, its a feature! /NT sdfernando May 2019 #32

neohippie

(1,140 posts)
8. here's another link to story
Wed May 22, 2019, 02:17 PM
May 2019

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.

Response to pnwmom (Original post)

suffragette

(12,232 posts)
12. Similar to the "glitch" during Libor investigation.
Wed May 22, 2019, 02:22 PM
May 2019

https://www.marketwatch.com/story/libor-probe-deutsche-bank-failed-to-keep-chats-2015-07-31

A month after reaching a $2.5 billion settlement over interest rate rigging, Deutsche Bank AG told regulators its disclosures may have been incomplete because it accidentally failed to archive electronic chats involving its employees, people familiar with the matter said.

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.

Ford_Prefect

(7,772 posts)
17. One might almost conclude it was a practice of the overseers within the bank
Wed May 22, 2019, 02:34 PM
May 2019

who approved the software and reviewed it for accuracy.

mitch96

(13,766 posts)
27. "Similar to the "glitch" during Libor investigation."
Wed May 22, 2019, 07:11 PM
May 2019

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

Jarqui

(10,094 posts)
14. However, the story would tend to back up the report that
Wed May 22, 2019, 02:28 PM
May 2019

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?

ScratchCat

(1,942 posts)
16. The fact that this bank
Wed May 22, 2019, 02:34 PM
May 2019

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?

Merlot

(9,693 posts)
29. Fixed it: Deutsche Bank "glitch" blocked reporting of suspicious transactions.
Wed May 22, 2019, 09:24 PM
May 2019

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)
30. 10. effing. years?
Wed May 22, 2019, 09:46 PM
May 2019

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.

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