Politics: Deutsche Bank Staff Saw Suspicious Activity in Trump and Kushner Accounts - - PressFrom - US
  •   
  •   
  •   

PoliticsDeutsche Bank Staff Saw Suspicious Activity in Trump and Kushner Accounts

22:10  19 may  2019
22:10  19 may  2019 Source:   nytimes.com

'I didn’t need money': Trump bristles at report Deutsche Bank staff saw suspicious activity

'I didn’t need money': Trump bristles at report Deutsche Bank staff saw suspicious activity "When you don't need or want money, you don't need or want banks," Trump said. But he still owes Deutsche Bank $300 million.

Deutsche Bank owns Trump / Kushner — and now Mueller has the bank running scared. I share your fear, but I see too many good people outraged. I look at staunch republicans we couldn’t stand If that bank is saying that Kushner ’s financial activity is suspicious , then it must be at the outrageous

A German business magazine is reporting that Deutsche Bank , the German financial giant which is a major lender to both President Donald Trump and his son-in-law Jared Kushner , identified “ suspicious transactions” related to Kushner family accounts , and has reported them to German

Deutsche Bank Staff Saw Suspicious Activity in Trump and Kushner Accounts© Willie J. Allen Jr. for The New York Times Tammy McFadden, a former Deutsche Bank employee, saw potentially suspicious transactions involving the company of Jared Kushner, President Trump’s son-in-law and adviser, she said.

JACKSONVILLE, Fla. — Anti-money laundering specialists at Deutsche Bank recommended in 2016 and 2017 that multiple transactions involving legal entities controlled by Donald J. Trump and his son-in-law, Jared Kushner, be reported to a federal financial-crimes watchdog.

The transactions, some of which involved Mr. Trump’s now-defunct foundation, set off alerts in a computer system designed to detect illicit activity, according to five current and former bank employees. Compliance staff members who then reviewed the transactions prepared so-called suspicious activity reports that they believed should be sent to a unit of the Treasury Department that polices financial crimes.

Trump loses court round on Democratic lawmakers' demand that banks provide his business records

Trump loses court round on Democratic lawmakers' demand that banks provide his business records President Donald Trump, three of his children and the Trump Organization on Wednesday lost their bid to block Deutsche Bank AG and Capital One Financial Corp from providing financial records to Democratic lawmakers investigating Trump's businesses. require(["medianetNativeAdOnArticle"], function (medianetNativeAdOnArticle) { medianetNativeAdOnArticle.getMedianetNativeAds(true); }); U.S. District Judge Edgardo Ramos ruled at a court hearing in New York that Congress has the legal authority to demand the records, clearing the way for the banks to comply with subpoenas issued to them by two U.S.

Deutsche Bank examined Trump 's account for Russia links. The Guardian reported in February that Deutsche Bank – whose clients include Trump ’s daughter Ivanka; her husband, Jared Kushner ; and Deutsche Bank claimed in a response to the first congressional request that US laws prohibit it The monitor, who has not yet been named, is due to begin its review of Deutsche ’s activities in

The Deutsche Bank board chairman called for an internal investigation and found troubling results A German bank reportedly has evidence of “ suspicious transactions” related to Jared Kushner ’s family accounts and is willing to Deutsche Bank —a major lender to President Donald Trump and his

But executives at Deutsche Bank, which has lent billions of dollars to the Trump and Kushner companies, rejected their employees’ advice. The reports were never filed with the government.

Sign Up For the Morning Briefing Newsletter

The nature of the transactions was not clear. At least some of them involved money flowing back and forth with overseas entities or individuals, which bank employees considered suspicious.

Real estate developers like Mr. Trump and Mr. Kushner sometimes do large, all-cash deals, including with people outside the United States, any of which can prompt anti-money laundering reviews. The red flags raised by employees do not necessarily mean the transactions were improper. Banks sometimes opt not to file suspicious activity reports if they conclude their employees’ concerns are unwarranted.

Judge rejects Trump’s request to halt congressional subpoenas for his banking records

Judge rejects Trump’s request to halt congressional subpoenas for his banking records A federal judge said Deutsche Bank and Capital One may hand over the president’s financial records to Democrats in the House. Trump’s attorneys could appeal the decision. Attorneys for Trump, his family and the Trump Organization filed for a preliminary injunction earlier this month as part of a lawsuit seeking to block the two institutions from handing over documents to the House Financial Services and Intelligence committees.

A German magazine is reporting that Deutsche Bank did an internal review of their business dealings with the Trump and Jared Kushner and found many " suspicious transactions" on Kushner 's accounts that they have turned over to German bank regulators. That information will certainly find its

Deutsche Bank is reportedly looking at evidence that companies related to White House senior adviser Jared Kushner may have moved " suspicious " money through the German lender.

Deutsche Bank Staff Saw Suspicious Activity in Trump and Kushner Accounts© Pablo Martinez Monsivais/Associated Press Deutsche Bank employees flagged concerns about activity in accounts linked to both Mr. Kushner and Mr. Trump.

But former Deutsche Bank employees said the decision not to report the Trump and Kushner transactions reflected the bank’s generally lax approach to money laundering laws. The employees — most of whom spoke on the condition of anonymity to preserve their ability to work in the industry — said it was part of a pattern of the bank’s executives rejecting valid reports to protect relationships with lucrative clients.

“You present them with everything, and you give them a recommendation, and nothing happens,” said Tammy McFadden, a former Deutsche Bank anti-money laundering specialist who reviewed some of the transactions. “It’s the D.B. way. They are prone to discounting everything.”

Ms. McFadden said she was terminated last year after she raised concerns about the bank’s practices. Since then, she has filed complaints with the Securities and Exchange Commission and other regulators about the bank’s anti-money-laundering enforcement.

Wells Fargo, TD Bank turn over Trump financial records to House Dems

Wells Fargo, TD Bank turn over Trump financial records to House Dems Wells Fargo and TD Bank have turned over President Trump’s financial records to the House Financial Services Committee, Fox News confirmed.

According to an article in Manager Magazin — a German monthly business magazine — Deutsche Bank could have evidence about suspicious money transfers by President Donald Trump 's son-in-law and White House senior adviser, Jared Kushner

Deutsche Bank has been a longtime lender to both President Donald Trump and his son-in-law, former CEO of Kushner Companies. Without providing any additional details about the “ suspicious monies,” the magazine reported that Deutsche Bank ’s leadership was worried about the backlash the

Kerrie McHugh, a Deutsche Bank spokeswoman, said the company had intensified its efforts to combat financial crime. An effective anti-money laundering program, she said, “requires sophisticated transaction screening technology as well as a trained group of individuals who can analyze the alerts generated by that technology both thoroughly and efficiently.”

“At no time was an investigator prevented from escalating activity identified as potentially suspicious,” she added. “Furthermore, the suggestion that anyone was reassigned or fired in an effort to quash concerns relating to any client is categorically false.”

Deutsche Bank Staff Saw Suspicious Activity in Trump and Kushner Accounts© Willie J. Allen Jr. for The New York Times Employees in Deutsche Bank’s offices in Jacksonville, Fla., vet transactions for compliance with anti-money laundering laws. Amanda Miller, a spokeswoman for the Trump Organization, the umbrella company for the Trump family’s many business interests, said: “We have no knowledge of any ‘flagged’ transactions with Deutsche Bank.” She said the Trump Organization currently has “no operating accounts with Deutsche Bank.” She did not respond when asked if other Trump entities had accounts.

Trump appeals ruling allowing banks to hand his financial records to Congress

Trump appeals ruling allowing banks to hand his financial records to Congress The Trumps and Trump Organization appealed a court order allowing Deutsche Bank AG and Capital One to hand their financial records over to Democratic lawmakers. They are asking the 2nd U.S. Circuit Court of Appeals in Manhattan to overrule U.S. District Judge Edgardo Ramos, who on Wednesday refused to block the banks from responding to subpoenas issued last month by two U.S. House of Representatives committees. Deutsche Bank, Capital One, the House Financial Services Committee and House Intelligence Committee did not immediately respond to requests for comment.

In financial regulation, a Suspicious Activity Report (SAR) or Suspicious Transaction Report (STR) is a report made by a financial institution about suspicious or potentially suspicious activity . The criteria to decide when a report must be made varies from country to country

German bank Deutsche Bank is pushing back on a report that it flagged an account tied to President Trump ’s son-in-law and aide Jared Kushner for “ suspicious transactions.” The bank said in a statement that the report was wrong and that it would take legal action against the reporting

Karen Zabarsky, a spokeswoman for Kushner Companies, said: “Any allegations regarding Deutsche Bank’s relationship with Kushner Companies which involved money laundering is completely made up and totally false. The New York Times continues to create dots that just don’t connect.”

Deutsche Bank’s decision not to report the transactions is the latest twist in Mr. Trump’s long, complicated relationship with the German bank — the only mainstream financial institution consistently willing to do business with the real estate developer.

Congressional and state authorities are investigating that relationship and have demanded the bank’s records related to the president, his family and their companies. Subpoenas from two House committees seek, among other things, documents related to any suspicious activities detected in Mr. Trump’s personal and business bank accounts since 2010, according to a copy of a subpoena included in a federal court filing.

Mr. Trump and his family sued Deutsche Bank in April, seeking to block it from complying with the congressional subpoenas. The president’s lawyers described the subpoenas as politically motivated.

Suspicious activity reports are at the heart of the federal government’s efforts to identify criminal activity like money laundering and sanctions violations. But government regulations give banks leeway in selecting which transactions to report to the Treasury Department’s Financial Crimes Enforcement Network.

President Trump's lawyers, House committees reach agreement to hold off on enforcing Deutsche Bank, Capital One subpoenas

President Trump's lawyers, House committees reach agreement to hold off on enforcing Deutsche Bank, Capital One subpoenas Lawyers for President Donald Trump have reached an agreement with the House Intelligence and Financial Services committees to hold off for now on enforcing the subpoenas for Trump's financial records from Deutsche Bank and Capital One, according to a court document and a source familiar with the agreement. Similar to a deal reached earlier this week with the House Oversight committee, the agreement allows for an expedited appeal schedule. "The parties have reached an agreement regarding compliance with and enforcement of the subpoenas during the pendency of Plaintiff's appeal," the court document filed Saturday reads.

Deutsche Bank is a key banker for both senior White House adviser Kushner and his father-in-law, President Donald Trump . “Their finding: There are indications that Donald Trump ’s son-in-law or persons or companies close to him could have channeled suspicious monies through Deutsche

Deutsche Bank looks at ' suspicious ' Kushner transactions: report Deutsche Bank is looking at evidence that companies related to Jared Kushner may have moved

Lenders typically use a layered approach to detect improper activity. The first step is filtering thousands of transactions using computer programs, which send the ones considered potentially suspicious to midlevel employees for a detailed review. Those employees can decide whether to draft a suspicious activity report, but a final ruling on whether to submit it to the Treasury Department is often made by more senior managers.

In the summer of 2016, Deutsche Bank’s software flagged a series of transactions involving the real estate company of Mr. Kushner, now a senior White House adviser.

Ms. McFadden, a longtime anti-money laundering specialist in Deutsche Bank’s Jacksonville office, said she had reviewed the transactions and found that money had moved from Kushner Companies to Russian individuals. She concluded that the transactions should be reported to the government — in part because federal regulators had ordered Deutsche Bank, which had been caught laundering billions of dollars for Russians, to toughen its scrutiny of potentially illegal transactions.

Ms. McFadden drafted a suspicious activity report and compiled a small bundle of documents to back up her decision.

Typically, such a report would be reviewed by a team of anti-money laundering experts who are independent of the business line in which the transactions originated — in this case, the private-banking division — according to Ms. McFadden and two former Deutsche Bank managers.

That did not happen with this report. It went to managers in New York who were part of the private bank, which caters to the ultrawealthy. They felt Ms. McFadden’s concerns were unfounded and opted not to submit the report to the government, the employees said.

Democrats claim victory as Trump gets battered in court

Democrats claim victory as Trump gets battered in court President Trump took a beating in federal court this week, losing a pair of lawsuits aimed at hindering House Democrats' investigations.

Trump 's debt to Deutsche Bank also included loans for Trump 's Chicago building and the Trump International Hotel in Washington, DC. That became a major issue prior to Trump 's taking office as ethicists and others demanded that he sever himself from his businesses and financial entanglements.

Report: Deutsche Bank looking at Kushner over suspicious money transfers. The case places an uncomfortable spotlight on Deutsche Bank ’s leadership, including chairman of the Indictments against Trump ’s former campaign chairman Paul Manafort and his deputy Rick Gate were handed

Ms. McFadden and some of her colleagues said they believed the report had been killed to maintain the private-banking division’s strong relationship with Mr. Kushner.

After Mr. Trump became president, transactions involving him and his companies were reviewed by an anti-financial crime team at the bank called the Special Investigations Unit. That team, based in Jacksonville, produced multiple suspicious activity reports involving different entities that Mr. Trump owned or controlled, according to three former Deutsche Bank employees who saw the reports in an internal computer system.

Some of those reports involved Mr. Trump’s limited liability companies. At least one was related to transactions involving the Donald J. Trump Foundation, two employees said.

Deutsche Bank ultimately chose not to file those suspicious activity reports with the Treasury Department, either, according to three former employees. They said it was unusual for the bank to reject a series of reports involving the same high-profile client.

Mr. Trump’s relationship with Deutsche Bank spans two decades. During a period when most Wall Street banks had stopped doing business with him after his repeated defaults, Deutsche Bank lent Mr. Trump and his companies a total of more than $2.5 billion. Projects financed through the private-banking division include Mr. Trump’s Doral golf resort near Miami and his transformation of Washington’s Old Post Office Building into a luxury hotel.

When he became president, he owed Deutsche Bank well over $300 million. That made the German institution Mr. Trump’s biggest creditor — and put the bank in a bind.

Senior executives worried that if they took a tough stance with Mr. Trump’s accounts — for example, by demanding payment of a delinquent loan — they could provoke the president’s wrath. On the other hand, if they didn’t do anything, the bank could be perceived as cutting a lucrative break for Mr. Trump, whose administration wields regulatory and law enforcement power over the bank.

House subpoenas for Trump’s bank records put on hold while president appeals

House subpoenas for Trump’s bank records put on hold while president appeals Trump and congressional Democrats are locked in an escalating fight over the president’s financial records. Trump’s attorneys argue that the information being requested by the House Intelligence and Financial Services committees from Deutsche Bank and Capital One are too broad and would violate the president’s privacy. Ramos rejected Trump’s motion for a preliminary injunction and ruled that the president and his family “are unlikely to succeed on merits of their claims." That brought House Democrats one step closer to getting access to a trove of financial information about Trump and his business.

Deutsche Bank says it did not report suspicious transactions from a bank account tied to President Trump 's son-in-law and aide Jared Kushner and promising legal action against the German magazine that initially reported the news.

In the past few years, United States and European authorities have punished Deutsche Bank for helping clients, including wealthy Russians, launder funds and for moving money into countries like Iran in violation of American sanctions. The bank has paid hundreds of millions of dollars in penalties and is operating under a Federal Reserve order that requires it to do more to stop illicit activities.

On two palm-tree-lined campuses in Jacksonville, Deutsche Bank has thousands of employees who vet customers and transactions. Six current and former bank employees there said the operations were deeply troubled.

Anti-money laundering workers were pressured to quickly sift through transactions to assess whether they were suspicious, the employees said. As a result, they often erred on the side of not flagging transactions.

Two former employees said that they had raised concerns about transactions involving companies linked to prominent Russians, but that managers had told them not to file suspicious activity reports. The employees were under the impression that the bank did not want to upset important clients.

Several employees said they had complained about the bank’s anti-money laundering processes to Joshua Blazer, the head of Deutsche Bank’s financial crimes investigations division in Jacksonville, and had then been criticized for having a negative attitude. One employee said she resigned last summer over concerns about the bank’s ethics.

Mr. Blazer, hired by Deutsche Bank in 2017 to strengthen the bank’s financial crime-fighting apparatus, declined to comment.

Ms. McFadden’s job at Deutsche Bank was to inspect clients and transactions in the company’s private-banking division — the unit that lent money to Mr. Trump. She joined the bank in 2008, after working for Bank of America, also in Jacksonville.

Ms. McFadden had left Bank of America in 2005, and later sued for racial discrimination and wrongful termination. According to court records, her lawsuit was settled on confidential terms the same year she joined Deutsche Bank, where she went on to win multiple performance awards.

Around the time she flagged the Kushner Companies’ transactions, Ms. McFadden said, she also complained about how the bank was scrutinizing the accounts of high-profile customers, such as those in public office. Those customers — known as politically exposed persons — are regarded as at heightened risk of being involved in corruption. As a result, their accounts are subject to extra vetting.

Ms. McFadden said she had told her superiors that dozens of politically exposed clients of the private-banking division, including Mr. Trump and members of his family, were not receiving that added attention. Her superiors told her to stop raising questions, according to Ms. McFadden and the two former managers.

After taking her complaint to the human resources department, Ms. McFadden was transferred to another division. She was terminated in April 2018. The bank told her that she was not processing enough transactions.

Ms. McFadden disputed that. She said her superiors had reduced the number of transactions she was assigned to review after she voiced her concerns. She and the two former managers said they perceived her termination as an act of retaliation.

“They attempted to try to silence me,” she said. “I’m at peace because I know that I did the right thing.”

Follow David Enrich on Twitter: @davidenrich.

Kitty Bennett and Susan C. Beachy contributed research.

Read More

House subpoenas for Trump’s bank records put on hold while president appeals.
Trump and congressional Democrats are locked in an escalating fight over the president’s financial records. Trump’s attorneys argue that the information being requested by the House Intelligence and Financial Services committees from Deutsche Bank and Capital One are too broad and would violate the president’s privacy. Ramos rejected Trump’s motion for a preliminary injunction and ruled that the president and his family “are unlikely to succeed on merits of their claims." That brought House Democrats one step closer to getting access to a trove of financial information about Trump and his business.

—   Share news in the SOC. Networks

Topical videos:

usr: 3
This is interesting!