Deutsche Bank fined nearly $10 million for controlling Euribor | Investment News
By Tom Sims and Hans Seidenstuecker
FRANKFURT (Reuters) – German financial regulator BaFin has fined Deutsche Bank nearly $10 million over controls related to the Euribor interest rate, a setback for the country’s biggest lender as it seeks to restore its reputation.
The 8.66 million euro ($9.77 million) fine announced on Wednesday is the first imposed by BaFin under a 2018 rule aimed at preventing the manipulation of Euribor, the index of reference of the interbank offered rate in euros used in the financial sector.
“The bank at times did not have effective prevention systems, controls and policies in place,” BaFin said.
Deutsche Bank said it accepted the fine and had put in place measures to improve its controls over Euribor.
The bank added that there was no reason to believe that it had submitted incorrect rates to the reference administrator.
The period in question was between April 2019 and April 2020, a source with knowledge of the matter told Reuters.
BaFin found flaws in some processes intended to safeguard the quality of the data used to calculate the rate, including weaknesses in regular checks and other organizational precautions, the source said.
The bank has been the subject of numerous regulatory and legal investigations over the past decade. This has included rate-rigging allegations that have implicated several global banks.
In April, BaFin ordered Deutsche Bank to implement new safeguards to prevent money laundering.
Under new management, BaFin itself tried to restore its image but failed to spot wrongdoing before the collapse last year of German payments company Wirecard.
(Reporting by Tom SimsEditing by Louise Heavens and David Goodman)
Copyright 2021 Thomson Reuters.