Deutsche ‘failed to act over Ep­stein’

The Daily Telegraph - Business - - Front Page - By Lucy Bur­ton

DEUTSCHE BANK al­lowed bil­lion­aire pae­dophile Jef­frey Ep­stein to make a string of sus­pi­cious pay­ments to women with­out proper checks, a damn­ing in­ves­ti­ga­tion has found.

The Ger­man lender failed to step in when Ep­stein was wiring money to co-con­spir­a­tors, Rus­sian mod­els and women “with Eastern Euro­pean sur­names”, the New York Depart­ment of Fi­nan­cial Ser­vices (DFS) said.

He also paid for women’s school tu­ition, ho­tels and rent.

Rather than car­ry­ing out de­tailed scru­tiny, the DFS said that com­pli­ance

‘Deutsche Bank has agreed to pay a $150m (£120m) penalty over its deal­ings with Jef­frey Ep­stein’

work­ers used in­ter­net searches to check that the women paid by Ep­stein were over 18. His lawyer also with­drew $800,000 in cash on his be­half in just four years, in­clud­ing $100,000 for “tipping and house­hold ex­penses”.

Deutsche has agreed to pay a $150m (£120m) penalty over its deal­ings with Ep­stein, as well as com­pli­ance fail­ures re­lated to Danske Bank Es­to­nia and FBME Bank. Ep­stein killed him­self in a New York jail cell last year.

Chief ex­ec­u­tive Chris­tian Sew­ing told staff: “We ac­knowl­edge our er­ror of on-board­ing Ep­stein in 2013.”

The set­tle­ment marks the first en­force­ment ac­tion by a reg­u­la­tor against a fi­nan­cial in­sti­tu­tion for deal­ings with Mr Ep­stein. The UK fi­nan­cial reg­u­la­tor is cur­rently in­ves­ti­gat­ing Bar­clays chief ex­ec­u­tive Jes Sta­ley over his ties with the de­ceased Amer­i­can.

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