2024-01-01 SEC Press press_release 62 KB 2,460 chars

Deutsche Bank Subsidiary to Pay $4 Million for Untimely Filing Certain Suspicious Activity Reports

Release
2024-208
Source PDF JSON
summary

Deutsche Bank Securities Inc. settled SEC charges for failing to timely file Suspicious Activity Reports (SARs) by paying a $4 million civil penalty.

paragraph

Deutsche Bank Securities Inc. was charged with violating Section 17(a) of the Securities Exchange Act and Rule 17a-8 for delayed SAR filings between April 2019 and March 2024. The firm failed to complete investigations promptly, with some delays exceeding two years. To settle the matter, the broker-dealer agreed to a $4 million civil penalty, a censure, and a cease-and-desist order.

narrative

The SEC charged Deutsche Bank Securities Inc., a subsidiary of Deutsche Bank AG, for failing to file Suspicious Activity Reports (SARs) in a timely manner. Between April 2019 and March 2024, the firm failed to conduct or complete investigations promptly, including instances where filings were delayed by more than two years. These investigations were often prompted by law enforcement or regulatory inquiries. The firm violated Section 17(a) of the Securities Exchange Act and Rule 17a-8. To resolve the charges, Deutsche Bank Securities agreed to a $4 million civil penalty, a censure, and a cease-and-desist order. The settlement was reached without the firm admitting or denying the SEC’s findings. This enforcement action underscores the critical importance of timeliness in reporting suspected illegal financial activity.

Enriched metadata

Scheme
non-corporate (92%)
Outcome
settled
Settlement
$4,000,000
Civil penalty
$4,000,000
Classified non-corporate(confidence 92%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Statutes
Section 17(a) of the Securities Exchange ActRule 17a-8
Parties
deutsche bank securitiesdeutsche bank securities inc.sheldon l. pollockthe examination that led to the investigation of deutsche bank securitiesthe sec’s investigationthe sec’s orderthe securities and exchange commission
Keywords
deutsche bankbank securitiesbankdeutschesecuritiessecsarscertain suspicioussuspicious activityactivity reportsactivitycertainenforcementorderbank subsidiary

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 1
  • $4.00M $4 million $1M–$10M
Entities 7
  • company deutsche bank securities
  • company deutsche bank securities inc.
  • person sheldon l. pollock
  • company the examination that led to the investigation of deutsche bank securities
  • agency the sec’s investigation
  • agency the sec’s order
  • agency the securities and exchange commission
Triples 12
  • The Securities and Exchange Commission charged Deutsche Bank Securities Inc.
  • Deutsche Bank Securities agreed to pay a $4 million civil penalty
  • Broker-dealers are required by the Bank Secrecy Act and regulations promulgated by the U.S Department of the Treasury’s Financial Crimes Enforcement Network
  • Deutsche Bank Securities received requests in connection with law enforcement or regulatory investigations or litigation
  • The SEC’s order finds that Deutsche Bank Securities failed to conduct or complete the investigations within a reasonable period of time
  • Deutsche Bank Securities took more than two years to file the SARs
  • Sheldon L. Pollock said Even the best information collected from SARs is of limited use if its stale by the time it’s provided to law enforcement
  • The SEC’s order finds that Deutsche Bank Securities violated Section 17(a) of the Securities Exchange Act and Rule 17a-8 thereunder
  • Deutsche Bank Securities agreed to a censure, a cease-and-desist order, and the civil penalty referenced above
  • The SEC’s investigation was conducted by Alicia Guo, Joshua Tannen, and Steven G. Rawlings of the SEC’s New York Regional Office, and Joy Guo of the Boston Regional Office
  • The investigation was supervised by Mr. Pollock
  • The examination that led to the investigation of Deutsche Bank Securities was conducted by Dwight Fu and Lisa Jordan of the Division of Examinations
PDF (from attached: pdf)
In re DEUTSCHE BANK · Source
Text layers
Extracted body text (2,460c) 
The Securities and Exchange Commission today charged registered broker-dealer Deutsche Bank Securities Inc., a subsidiary of Deutsche Bank AG, for failing to file certain Suspicious Activity Reports (SARs) in a timely manner. Deutsche Bank Securities has agreed to pay a $4 million civil penalty to settle the SEC’s charges. Broker-dealers are required by the Bank Secrecy Act and regulations promulgated by the U.S Department of the Treasury’s Financial Crimes Enforcement Network to file SARs for transactions they have reason to suspect involve funds derived from illegal activity, lack a business or apparent lawful purpose, or are intended to facilitate criminal activity. According to the SEC’s order, Deutsche Bank Securities received requests in connection with law enforcement or regulatory investigations or litigation that prompted it to conduct SARs investigations. However, the SEC’s order finds that, in certain instances from April 2019 to March 2024, Deutsche Bank Securities failed to conduct or complete the investigations within a reasonable period of time, including at least two instances where Deutsche Bank Securities took more than two years to file the SARs. “Even the best information collected from SARs is of limited use if its stale by the time it’s provided to law enforcement,” said Sheldon L. Pollock, Associate Director of the SEC’s New York Regional Office. “Through this enforcement action, we are not only holding Deutsche Bank Securities accountable, we are also sending a clear message to other market registrants that timeliness in filing SARs is of paramount importance.” The SEC’s order finds that Deutsche Bank Securities violated Section 17(a) of the Securities Exchange Act and Rule 17a-8 thereunder. Without admitting or denying the SEC’s findings, Deutsche Bank Securities agreed to a censure, a cease-and-desist order, and the civil penalty referenced above. The SEC’s investigation was conducted by Alicia Guo, Joshua Tannen, and Steven G. Rawlings of the SEC’s New York Regional Office, and Joy Guo of the Boston Regional Office, with assistance from Daniel Goldberg, Andrae Eccles, Damon Reed, David Cohen, Susan Schneider, and Naomi Sevilla of the Office of Market Intelligence’s Bank Secrecy Act Review Group. The investigation was supervised by Mr. Pollock. The examination that led to the investigation of Deutsche Bank Securities was conducted by Dwight Fu and Lisa Jordan of the Division of Examinations.
OCR text (2,460c · html-text · 99% conf) 
The Securities and Exchange Commission today charged registered broker-dealer Deutsche Bank Securities Inc., a subsidiary of Deutsche Bank AG, for failing to file certain Suspicious Activity Reports (SARs) in a timely manner. Deutsche Bank Securities has agreed to pay a $4 million civil penalty to settle the SEC’s charges. Broker-dealers are required by the Bank Secrecy Act and regulations promulgated by the U.S Department of the Treasury’s Financial Crimes Enforcement Network to file SARs for transactions they have reason to suspect involve funds derived from illegal activity, lack a business or apparent lawful purpose, or are intended to facilitate criminal activity. According to the SEC’s order, Deutsche Bank Securities received requests in connection with law enforcement or regulatory investigations or litigation that prompted it to conduct SARs investigations. However, the SEC’s order finds that, in certain instances from April 2019 to March 2024, Deutsche Bank Securities failed to conduct or complete the investigations within a reasonable period of time, including at least two instances where Deutsche Bank Securities took more than two years to file the SARs. “Even the best information collected from SARs is of limited use if its stale by the time it’s provided to law enforcement,” said Sheldon L. Pollock, Associate Director of the SEC’s New York Regional Office. “Through this enforcement action, we are not only holding Deutsche Bank Securities accountable, we are also sending a clear message to other market registrants that timeliness in filing SARs is of paramount importance.” The SEC’s order finds that Deutsche Bank Securities violated Section 17(a) of the Securities Exchange Act and Rule 17a-8 thereunder. Without admitting or denying the SEC’s findings, Deutsche Bank Securities agreed to a censure, a cease-and-desist order, and the civil penalty referenced above. The SEC’s investigation was conducted by Alicia Guo, Joshua Tannen, and Steven G. Rawlings of the SEC’s New York Regional Office, and Joy Guo of the Boston Regional Office, with assistance from Daniel Goldberg, Andrae Eccles, Damon Reed, David Cohen, Susan Schneider, and Naomi Sevilla of the Office of Market Intelligence’s Bank Secrecy Act Review Group. The investigation was supervised by Mr. Pollock. The examination that led to the investigation of Deutsche Bank Securities was conducted by Dwight Fu and Lisa Jordan of the Division of Examinations.

Related documents (1)