Deutsche Bank Whistleblowing

If you’re a Deutsche Bank employee with knowledge of potential fraud, financial misconduct, anti-money laundering violations, or foreign bribery, U.S. laws can protect you and offer substantial awards for your information.

We suggest keeping quiet and avoiding internal hotlines, as reporting internally often leads to retaliation. Based on previous Deutsche Bank whistleblowing cases, it’s understood that internal compliance programs are often put in place to protect the interests of the bank, not its employees.

Continue reading to learn more about the types of fraud or misconduct Deutsche Bank has been involved in over the years, and the process for reporting your concerns.

Based out of Germany, Deutsche Bank is a publicly traded company with a history of financial offenses, including violations of the Bank Secrecy Act, Foreign Corrupt Practices Act, Securities Exchange Act, and the Commodities Exchange Act, among others.

If you have information that pertains to similar offenses, you may want to consider blowing the whistle. Your information can protect investors and financial markets from harm. Below is a list of the types of frauds the bank has been engaged in over the years:

Commodities Fraud

Deutsche Bank has been involved in several commodities fraud cases, which have resulted in large financial penalties for Deutsche Bank, as well as criminal charges against some of its employees.

• Precious Metals Manipulation: the bank has been accused of manipulating the price of precious metals like gold and silver through spoofing and collusion with other traders.
• Energy Market Manipulation: Deutsche Bank has been implicated in schemes to rig the energy market, including manipulating the price of oil and gas derivatives.
• Spoofing: The bank has engaged in this manipulative trading practice where large orders are placed with the intent to cancel them before execution.

Securities Fraud

Deutsche Bank has been involved in several high-profile securities fraud cases. While the bank has faced numerous legal challenges over the years.

• Residential Mortgage-Backed Securities (RMBS) Fraud: back in 2008, Deutsche Bank was one of the major financial institutions implicated in the housing market collapse.
  
• Foreign Corrupt Practices Act (FCPA) Violations: Deutsche Bank has been accused of violating the FCPA by paying bribes to foreign officials to secure business deals.
  
• Libor Manipulation: as stated above, the bank was involved in the Libor scandal, where traders at various banks manipulated the LIBOR to profit from certain financial instruments.
  
• Anti-Money Laundering Violations: the bank has faced allegations of failing to adequately monitor its accounts for suspicious activity possibly related to money laundering.
  
• Market Manipulation: the bank has been accused of manipulating various markets, including the precious metals market and the energy market.

Anti-Money Laundering (AML) Violations

Deutsche Bank has been known to violate anti-money laundering laws, including the Bank Secrecy Act (BSA), and other anti-money laundering deficiencies.

• Failing to adequately monitor accounts for suspicious activity: neglecting to identify and report transactions that may be linked to money laundering or illegal activity.
• Inadequate customer due diligence: the bank may have failed to properly verify the identity of its customers, allowing criminals (or those with ties) to open accounts.
• Inaccurate reporting of suspicious activity: Deutsche Bank may have underreported or misreported suspicious transactions to regulatory authorities.
• Collusion with criminals: in some cases, the bank has been accused of knowingly facilitating money laundering activities for criminal organizations.

Cases stemming from these violations have resulted in major financial penalties for Deutsche Bank, as well as legal and regulatory consequences for the bank and its employees. The bank has also faced increased scrutiny from regulators and investors.

Below are a few of the cases Deutsche Bank has been involved, which has led to substantial penalties and a wake of financial disruption:

Unsafe and Unsound Anti-Money Laundering Practices (2023)

The Federal Reserve Board issued a $186 million fine and a consent order against Deutsche Bank due to unsafe and unsound practices and violations of previous consent orders related to sanctions compliance and anti-money laundering. The Board found that Deutsche Bank had failed to adequately address deficiencies in its anti-money laundering controls and governance, particularly in relation to its past dealings with Danske Bank’s Estonian branch.

Residential Mortgage-Backed Securities (2017)

The Justice Department, along with federal partners, announced a $7.2 billion settlement with Deutsche Bank resolving federal civil claims that Deutsche Bank misled investors in the packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities (RMBS) between 2006 and 2007, which led to the great recession of 2008, which the world is still suffering from in some degree.

The settlement required Deutsche Bank to pay a $3.1 billion civil penalty under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) as well as to provide $4.1 billion in relief to underwater homeowners, distressed borrowers and communities.

The LIBOR Scandal (2012)

One of the most known commodities fraud cases involving Deutsche Bank was its participation in the LIBOR scandal. LIBOR is a benchmark interest rate used to set the price of various financial instruments, including derivatives. Deutsche Bank (along with several other major banks) was accused of manipulating the LIBOR rate to profit from trades and improve their financial performance. Traders at the bank were found to have colluded with their counterparts at other banks to submit false LIBOR rates. Deutsche Bank was fined $800,000,000 for its involvement.

Spoofing (2018)

Deutsche Bank was fined a total of $10.25 million by the Commodity Futures Trading Commission (CFTC) for various regulatory violations and spoofing activities.

The bank failed to accurately report swap data, had inadequate disaster recovery plans, and was involved in spoofing, a manipulative trading practice. As a result, Deutsche Bank faced significant financial penalties, and was required to comply with a court-appointed monitor and was prohibited from committing future violations of relevant regulations.

These cases have resulted in massive financial penalties, reputational damage, and increased regulatory scrutiny for Deutsche Bank.

Internal reporting may seem like a safe option. And Deutsche Bank encourages whistleblowers to report concerns internally using their Whistleblowing Central Function. However, like at many large corporations, these channels are often designed to protect the interest of the bank, and not the whistleblower, and often lead to retaliation or inaction. In our 35 years protecting whistleblowers, we’ve seen this time and time again.

Many feel also feels as though their whistleblowing won’t have an impact or their disclosures will not be protected. However, this is far from the truth. The U.S. has some of the strongest protections for whistleblowers, including the ability to file anonymously and receive substantial awards If you’re thinking about reporting concerns, we suggest using these U.S. laws, which we discuss in greater detail below.

Deutsche Bank’s illegal activities have created significant financial losses for investors. And given the bank’s record of violations and non-compliance, it’s expected that the bank will continue engaging in fraudulent behaviors if they can avoid being detected.

However, whistleblowers are key to stopping such violations, and preserving the integrity of financial markets. If you are an employee of Deutsche Bank, below are several laws that you can use to report your concerns and potentially qualify for an award.

Securities and Exchange Commission (SEC) Whistleblower Program
The SEC Whistleblower Program offers awards of up to 30% of the monetary sanctions imposed by the SEC in cases where a whistleblower’s information is instrumental in a successful enforcement action. To be eligible, whistleblowers must provide original information that leads to a successful enforcement action. Anonymous filing is allowed, but it must be done with the help of an attorney.

Commodity Futures Trading Commission (CFTC) Whistleblower Program
The CFTC Whistleblower Program also offers awards of up to 30% of the monetary sanctions imposed by the CFTC in cases where a whistleblower’s information is instrumental in a successful enforcement action. To be eligible, whistleblowers must provide original information that leads to a successful enforcement action. The CFTC offers strong protections for whistleblowers, including the ability to file claims anonymously, but only with the assistance of an attorney.

Foreign Corrupt Practices Act (FCPA) Whistleblower Program
Under the Dodd-Frank Act, whistleblowers may be eligible for awards of up to 30% of the monetary sanctions imposed by the DOJ in cases where a whistleblower’s information is instrumental in a successful enforcement action. To become eligible, whistleblowers must provide original information that leads to a successful enforcement action.

Anti-Money Laundering (AML) Rewards Programs
The Anti-Money Laundering and Sanctions Whistleblower Program is administered by FinCEN and offers rewards to whistleblowers who provide original information that leads to a successful enforcement action against a person or entity that has violated the Bank Secrecy Act or the USA Patriot Act. Whistleblowers can receive up to 30% of the monetary sanctions imposed by the Treasury Department, and the program offers protections for whistleblowers, including the ability to file claims anonymously and confidentially.

There have many other laws that have been used to penalize Deutsche Bank, such as those found under The U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) and The Financial Industry Regulatory Authority (FINRA).

Given the extremely complex nature of violations involving Deutsche Bank, and the specific reporting procedures of each whistleblower program, we suggest consulting with an attorney who specializes in whistleblowing. Why? Because an attorney can help you do the following:

• Protection: a whistleblower attorney can help you understand your legal rights and protect you from retaliation.
• Maximize Award: a whistleblower attorney can maximize your award potential by ensuring claims are filed correctly and on time and negotiate on your behalf.
• Expertise: whistleblowing is complex with many rules, and a whistleblower attorney can help you navigate the complex nature of the process.
• Confidential: whistleblower attorneys can ensure you have a safe and confidential space to discuss your concerns and provide guidance throughout the process.
• Anonymous: utilizing a whistleblower attorney when filing allows you to report violations to the government anonymously.
• Negotiation: if a settlement agreement presents itself, a whistleblower attorney can help you negotiate with your employer, and also demand other compensation.
• Contingency: most whistleblower attorneys work on a contingency basis, so there is no fee unless they can get an award or settlement for you.

In essence, hiring a whistleblower attorney can increase your chances of a successful outcome and protect yourself from potential legal and financial risks. In dealing with such large financial companies as Deutsche Bank, it’s highly recommended you seek legal assistance.

Our firm is behind some of the largest whistleblowing cases in banking history, such as the $230 billion Danske Bank money laundering scheme, exposed by client Howard Wilkinson.

We’re also behind the UBS Swiss banking scandal, unveiled by our client Bradley Birkenfeld, which busted over 4,450 U.S. taxpayers, and landed him a $104 million award by the IRS.

If you’re seeking legal assistance, get in touch with our firm for a free and confidential case evaluation. We work on a contingency basis and do not get paid unless we win your case.