Deutsche Bank AG will pay nearly $ 125 million to end US prosecution on charges of bribery and fraud in the market of precious metals.
Germany’s largest bank agreed to pay the fine based on a three-year deferred prosecution agreement with the US Department of Justice and a civil settlement with the US Securities and Exchange Commission, according to the Reuters news agency.
The charges against Deutsche Bank relate to violations of the US Federal Foreign Corrupt Practices Act (FCPA). The bank’s representatives bribed foreign officials and others in Saudi Arabia, China and Italy in order to obtain lucrative business projects.
Payments to a Saudi Arabian intermediary were treated as «referral» fees and payments to an Abu Dhabi intermediary as «consultancy» fees.
Deutsche Bank is also accused of making improper payments to a consultant to help establish a clean energy investment fund with a Chinese government entity, and to an Italian tax judge for referring wealthy clients.
Moreover, prosecutors accused Deutsche Bank traders of placing fraudulent trades, known as spoofing, to induce other traders to buy and sell precious metals futures contracts at prices they otherwise would not have.
A bank spokesman said the company is taking responsibility for these past actions, which occurred between 2008 and 2017, after «thorough» internal investigations and full cooperation with the authorities.
In 2019, Deutsche Bank agreed to pay more than $ 16 million to the US government for hiring unqualified relatives of government officials in China and Russia to promote its business projects.