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FCA hands Deutsche Bank 163 million sterling fine for Russia trades
January 31, 2017 / 7:11 AM / a year ago

FCA hands Deutsche Bank 163 million sterling fine for Russia trades

LONDON (Reuters) - Britain’s financial regulator fined Deutsche Bank 163 million pounds ($203.77 million) for serious failings in relation to anti-money laundering controls, it said on Tuesday.

FILE PHOTO - The headquarters of Germany's Deutsche Bank is photographed early evening in Frankfurt, Germany, January 26, 2016. REUTERS/Kai Pfaffenbach/File Photo

The fine was the biggest ever imposed by the Financial Conduct Authority or its predecessor, the Financial Services Authority in relation to failings in anti-money laundering surveillance.

The regulator said that inadequate controls by Deutsche Bank meant that its Russian subsidiary was able to execute more than $6 billion of so-called “mirror trades”, where stocks were bought in roubles and sold at the same time in U.S. dollars, in a manner “highly suggestive of financial crime”.

It added that a further $3.8 billion in suspicious “one-sided” trades also occurred.

On Monday, New York’s banking regulator said Deutsche Bank had agreed to pay it $425 million for the “mirror trading” scheme, saying the lender had conducted its business in an unsafe and unsound manner.

(This version of the story corrects to show was largest fine by the FCA for anti-money laundering control failings.)

Reporting by Simon Jessop; Editing by Rachel Armstrong

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