Deutsche Bank to pay nearly $125 million to resolve U.S. bribery, metals charges

By Jonathan Stempel, Noor Zainab Hussain-JANUARY 8, 2021

FILE PHOTO: People walk past a Deutsche Bank office in London, Britain July 8, 2019. REUTERS/Simon Dawson

NEW YORK (Reuters) - Deutsche Bank AG will pay nearly $125 million to avoid U.S. prosecution on charges it engaged in foreign bribery schemes and manipulated precious metals markets, the latest blow for the bank as it tries to rebound from a series of scandals.

Germany’s largest lender agreed to the payout as it entered a three-year deferred prosecution agreement with the U.S. Department of Justice, and a related civil settlement with the U.S. Securities and Exchange Commission.

Almost all of the payout relates to charges Deutsche Bank violated the federal Foreign Corrupt Practices Act (FCPA) over its dealings in Saudi Arabia, Abu Dhabi, China and Italy, court papers show. Nearly two-thirds of the payout is a criminal fine.

The settlements were made public on Friday at a hearing in the federal court in Brooklyn, New York.

“Deutsche Bank engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others,” in order to win and retain “lucrative business projects,” Acting U.S. Attorney Seth DuCharme in Brooklyn said in a statement.

A bank spokesman said, “We take responsibility for these past actions,” which occurred from 2008 to 2017, following “thorough” internal probes and full cooperation with authorities.

Deutsche Bank has been trying to restore profitability after five years of losses, including by exiting some businesses and reducing its workforce by 18,000.

It has also been trying to restore its image in Washington amid several investigations into its dealings with U.S. President Donald Trump, a longtime client.

Prosecutors accused Deutsche Bank of violating books-and-records provisions of the FCPA, which forbids companies with U.S. operations from paying bribes elsewhere.