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Deutsche Bank employees saw suspicious activity in Trump and Kushner accounts

Did Trump and Kushner Laundered Money via DB?

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According to a report published by Deutsche Bank money-laundering experts, US President Donald Trump and his son-in-law Jared Kushner had “suspicious activities” during 2016 and 2017.

During these years, Deutsche Bank lent billions of dollars to companies belonging both to Donald Trump and Jared Kushner companies. 

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Several media, reported that several employees alerted Deutsche Bank executives to report the activities a few years ago. However, their requests were denied as Trump and Kushner in order “to protect relationships with valued clients”, reports the New York Times. 

Some former employees shared to the press that a large amount of money was regularly sent overseas, which caused the suspicions. Kushner’s spokesperson denied the allegations, judging them “totally false”. 

DB ignored employees’ call

According to an exclusive document published by the New York Times last week, Deutsche Bank ignored its own employees call to take action in what seems to be a “suspicious activity” in both Donald Trump and Jared Kushner’s companies accounts.

As a matter of fact, “reports were never filed with the government, the article states”, reported the New York Times. While sources did not fully disclose what the transactions were, it seems that “funds flowing overseas” were involved.

David Enrich, finance editor of The New York Times said that Deutsche Bank was “laundering money for wealthy Russians and people connected to Putin and the Kremlin in a variety of ways for almost the exact time period that they were doing business with Donald Trump”.

As a response, President Donald Trump reacted from his Twitter account, describing the New York Times as “Fake News” reporting a “Russia Hoax”.

Deutsche Bank spokeswoman Kerrie McHugh told NBC News that the bank recently “increased our anti-financial crime staff and enhanced our controls in recent years and take compliance with anti-money laundering laws very seriously”.

Moreover, one of Donald Trump’s companies owe at least $130 million. According to Propublica.org, one of Deutsche Bank’s private unit would have loaned Trump $48 million right after he had defaulted a $640 million loan and that one of the bank’s commercial unit offer was rejected.

In total, a cumulative amount of $2.5 billion was loaned to Donald Trump’s project since 1999, according to Propublica.org.

Trump’s financial records

Last month, Mr Trump’s lawyers sued Deutsche Bank “from complying with congressional subpoenas seeking information about potential suspicious payments”, reports CNBC. Last week, “an agreement has been reached with the House regarding a stay of the subpoenas pending appeal”, Donald Trump’s attorney said.

However, the US President’s effort to prevent the release of his financial statements failed for the second time. In the meantime, the Financial Times published a new estimation, stating that Donald Trump currently owes roughly $300 million to Deutsche Bank.

In addition, NBC reported that Capital One’s records were also sought by the House Intelligence and Financial Services committees “amid probes of alleged foreign influence on U.S. elections”.

Read on Alvexo: “Deutsche Bank to Shrink its US investment bank”

DB involvement with Russia

Deutsche Bank has been recently fined for doing business with Russia in an illicit way, which could correlate with Enrich’s version.

As a matter of fact, DB was fined last year $425 million by New York State for laundering $10 billion out of Russia. Banking experts reported that Deutsche Bank gave permission to its traders to “engage in a money-laundering scheme while using “mirror traders” that pulled out $10 billion illegally”. 

“In today’s interconnected financial network, global financial institutions must be ever vigilant in the war against money laundering and other activities that can contribute to cybercrime and international terrorism”, financial services superintendent Maria T. Vullo said during the New York State’s hearing.

In addition, the judge from New York State described the bank’s anti-financial crime as “ineffective and understaffed. A senior compliance staffer repeatedly stated that he had to ‘beg, borrow, and steal’ to receive appropriate resources. At one point, an attorney who lacked any compliance background served as the Deutsche Bank’s Moscow branch’s head of compliance, head of legal, and as its AML Officer – all at the same time”.

A very unusual management that shook DB’s shareholders. Experts agree that it might be very likely that the reputation of Deutsche Bank will crumble after this new case, while its stocks fell by 1% earlier this week.

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Note: The opinions expressed in this article are the author's own and do not necessarily reflect the view of Alvexo on the matter.