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Daniel P. Stipano quoted in Law360 article, “Search of Deutsche Bank in AML probe could draw US eyes”

Law360

Daniel P. Stipano

Daniel P. Stipano was quoted on November 29, 2018 in a Law360 article, “Search of Deutsche Bank in AML probe could draw US eyes,” which discussed a raid by German police into Deutsche Bank AG’s office in regard to a money laundering investigation. The article stated, “Scores of police and federal officials searched the German banking giant's Frankfurt headquarters and five other locations early Thursday, collecting paper and electronic documents in an investigation that stems from the 2016 leak of the Panama Papers, which revealed a network of professionals helping wealthy individuals around the globe conceal their riches. Deutsche Bank, which said it's "cooperating fully" with the German investigation, declined to comment Thursday when asked whether U.S. officials have made any inquiries of the bank related to the raid, but Pablo Quiñones, founder of Quiñones Law PLLC and a former federal prosecutor in Manhattan, said it's likely to draw fresh interest from U.S. officials.”

Stipano noted, “Banks that have correspondent relationships with Deutsche Bank should be paying attention, too. This is going to be an area of regulatory scrutiny, so it would be a good idea for banks to get out in front of that and assess the controls they have in place for managing risk with respect to that account and look at some of the transactional activity to see if there are any suspicious transactions.”

The article also stated that it is not clear why German authorities acted when they did. Stipano added, “It's hard to think what else authorities here would try in the way of enforcement actions. My guess is that, to the extent this raises new issues, these are things the regulatory authorities in the U.S. will be cognizant of, but it's possible that instead of taking yet another enforcement action against Deutsche Bank, they may just take a look at the current action plans Deutsche has to achieve compliance with the Bank Secrecy Act. If those action plans need to be amended to address those concerns, then that could be something they would do.”

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