Suspicious Activity Reports Raise Questions about Deutsche Bank’s Knowledge of Zarrab’s Iran Sanctions Evasion Scheme
A recent investigation into the FinCEN Files has shed new light on Deutsche Bank’s involvement in suspicious transactions that may have helped Iranian banks evade US sanctions. The revelations have raised questions about how much the bank knew about Reza Zarrab, a Turkish trader accused of playing a key role in a billion-dollar gold-for-oil scheme.
Background: Reza Zarrab and the Iran Sanctions Evasion Scheme
Zarrab was arrested in Turkey in 2013 as part of a corruption investigation and later pleaded guilty to charges of money laundering, fraud, and helping Iran evade US sanctions. During his trial, he claimed that high-ranking Turkish government officials, including President Erdogan, had allowed Halkbank to facilitate illegal transactions to circumvent the sanctions.
Deutsche Bank’s Involvement in Suspicious Transactions
Deutsche Bank’s Suspicious Activity Reports (SARs) filed in 2017 revealed that the bank had processed millions of dollars in transactions for companies linked to Zarrab and his associates. The reports also showed that Deutsche Bank had facilitated transactions for an oil refinery in Turkmenistan, despite concerns that it may have been violating Iranian sanctions.
Further Evidence of Sanctions Evasion
The FinCEN Files investigation has uncovered evidence that Deutsche Bank may have allowed companies to evade US sanctions in Russia as well. The bank processed nearly $430 million in transactions for Surgutneftegas, one of Russia’s largest oil companies, between March and May 2015 – despite being aware of ongoing investigations into the company’s activities.
Deutsche Bank’s Track Record of Facilitating Suspicious Activities
Deutsche Bank has faced numerous penalties for facilitating suspicious activities in the past, including a $258 million fine in 2015. However, it appears that the bank continued to process transactions for sanctioned individuals and companies, including Russian billionaire Oleg Deripaska, who was put on the US sanctions list in 2018.
Experts Weigh In
Experts say that Deutsche Bank’s actions are likely motivated by profit, rather than any concern for compliance with international sanctions. “By going ahead with these suspicious transactions, banks are making more money than the possible cost of the violations,” said Tim White, a consultant at AML Right Source, an anti-money laundering consulting firm.
Denials and Concerns
Nadir Döviz, a Turkish company linked to Zarrab’s associates, has denied any involvement in illegal activities and claimed that it has never been subject to any money laundering investigation. However, Deutsche Bank’s SARs filed in 2017 revealed concerns about potential money laundering activity involving Nadir Döviz and its associates.
Conclusion
The FinCEN Files investigation has raised important questions about the role of Deutsche Bank and other financial institutions in facilitating illegal activities and evading international sanctions. As the world grapples with the complexities of modern finance, it is crucial that regulators and law enforcement agencies take swift action to hold banks accountable for their actions and prevent further exploitation of the global financial system.
Key Takeaways
- Deutsche Bank’s SARs filed in 2017 revealed millions of dollars in transactions linked to Zarrab and his associates.
- The bank facilitated transactions for an oil refinery in Turkmenistan, despite concerns about Iranian sanctions violations.
- Deutsche Bank processed nearly $430 million in transactions for Surgutneftegas, a Russian oil company, between March and May 2015 – despite being aware of ongoing investigations into the company’s activities.
- Experts believe that Deutsche Bank’s actions are motivated by profit, rather than any concern for compliance with international sanctions.