Bank staff flagged Trump, Kushner transactions for watchdog -NYTimes
(Adds Kushner company comment in paragraph 9)
WASHINGTON, May 19 (Reuters) - Anti-money laundering
specialists at Deutsche Bank AG recommended in 2016
and 2017 that multiple transactions involving entities
controlled by President Donald Trump and his son-in-law, Jared
Kushner, be reported to a federal financial-crimes watchdog, the
New York Times reported on Sunday.
The newspaper, citing five current and former Deutsche Bank
employees, said executives at the German-based 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.
The Times said the transactions, some of which involved
Trump's now-defunct foundation, set off alerts in a computer
system designed to detect illicit activity, according to the
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, according to the newspaper.
The Times reported the bank employees viewed the decision
not to report the transactions as a result of a lax approach to
money laundering laws. They said there was a pattern of bank
executives rejecting reports to protect relationships with
lucrative clients, according to the newspaper.
One employee who reviewed some of the transactions said she
was terminated last year after raising concerns about the bank's
practices, the Times reported.
The Times quoted a Deutsche Bank spokeswoman as saying
investigators were not prevented from escalating activity
identified as potentially suspicious. The spokeswoman described
as "categorically false" any suggestion that bank staff were
reassigned or fired in an effort to quash concerns related to
any client. She also said Deutsche Bank has intensified efforts
to combat financial crime.
A spokeswoman for the Trump Organization, which oversees
many of Trump's business interests, said the company was not
aware of any flagged transactions and currently has no operating
accounts with Deutsche Bank, according to the Times.
"The New York Times tries to create scandalous stories which
are totally false when they run out of things to write about," a
spokeswoman for Kushner Companies said in a statement to
Officials at Deutsche Bank and the Trump Organization were
not immediately available to Reuters for independent comment.
The Times said 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
The report surfaces at a time when congressional and New
York state authorities are investigating the relationship
between Trump, his family and Deutsche Bank, and demanding
documents related to any suspicious activity.
Trump has sued in court in an attempt to block U.S. House of
Representatives subpoenas for his financial records that were
sent to Deutsche Bank, Capital One Financial Corp and
the accounting firm Mazars LLP.
(Reporting by David Morgan
Editing by Kevin Drawbaugh and Chris Reese)
First Published: 2019-05-19 20:35:20
Updated 2019-05-19 20:43:27
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.