Deutsche Bank Subsidiary to Pay $4 Million for Untimely Filing Certain Suspicious Activity Reports

Core Viewpoint - The Securities and Exchange Commission (SEC) has charged Deutsche Bank Securities Inc. for failing to timely file Suspicious Activity Reports (SARs), resulting in a $4 million civil penalty to settle the charges [1][4]. Group 1: Regulatory Context - Broker-dealers are mandated by the Bank Secrecy Act and U.S. Treasury regulations to file SARs for transactions suspected of involving illegal funds or lacking lawful purpose [2]. - The SEC's order indicates that Deutsche Bank Securities received requests related to law enforcement investigations that necessitated SARs investigations [3]. Group 2: Investigation Findings - From April 2019 to March 2024, Deutsche Bank Securities failed to conduct or complete SARs investigations in a timely manner, with at least two instances where filings took over two years [3]. - The SEC emphasized the importance of timely SAR filings, stating that stale information is of limited use to law enforcement [4]. Group 3: Enforcement Actions - Deutsche Bank Securities has agreed to a censure, a cease-and-desist order, and the civil penalty without admitting or denying the SEC's findings [4]. - The investigation was conducted by various SEC officials and was supervised by the Associate Director of the SEC's New York Regional Office [5].