The US Federal Reserve is launching inquiries into Deutsche Bank's American operations over suspicions of its involvement in the money laundering activities of the Estonian branch of Danske Bank, Bloomberg reported, citing anonymous sources. The media platform reported that the investigation is in its early stages and at the moment the US regulator is trying to determine whether Deutsche Bank had adequately scrutinized transactions coming from the Danske Bank subsidiary.
When asked to comment on the issue, Deutsche Bank said in written response to Sputnik that "the bank has received an inquiry from the House Financial Services and Intelligence Committees. Deutsche Bank is engaged in a productive dialogue with those Committees to determine the best and most appropriate way of assisting them in their official oversight functions. We remain committed to providing appropriate information to all authorized investigations."
Separately, Bloomberg cited Deutsche Bank as sayibn that "no probes" had been launched, but admitted receiving "several requests for information from regulators and law enforcement agencies" from around the world regarding the Danske money laundering case. The bank added that it is cooperating with investigating agencies.
READ MORE: UK Probes Company Suspected of Ties to Danske Bank's Money Laundering — Reports
Whistleblower Howard Wilkinson exposed a $228 billion money-laundering scandal at the Estonian branch of Denmark's Danske Bank. Wilkinson suggests that 80-90% of the dirty money that flowed through the Estonian subsidiary was later transferred abroad via banks in the US, including JPMorgan, Bank of America, and American branch of Deutsche Bank.