Deutsche Bank’s Suspicious Transactions with Kyrgyz Banks Raise Questions About Money Laundering
Investigation Uncovers Possible Money Laundering Scheme Involving German Bank
An investigation into Deutsche Bank’s dealings with several Kyrgyz banks has raised concerns about potential money laundering and the bank’s compliance with anti-money laundering regulations.
The Transactions
The inquiry centers around a series of transactions involving Khabibula Abdukadyr, a businessman from Kyrgyzstan, and his companies. According to documents obtained by reporters, Saimaiti sent at least $17.4 million to AKA Immobilien, a German company owned by the Abdukadyr family, over the course of 2014.
Deutsche Bank’s Inquiries
Deutsche Bank grew suspicious of the transactions and sent inquiries to the Investment Trade Bank, the Russian parent of Rosinbank (now Keremet Bank), asking for information about Saimaiti’s business activities and the purpose of his transactions. However, the bank’s response was puzzling and lacked transparency.
Unclear Answers
The documents show that Deutsche Bank repeatedly asked questions about Saimaiti’s transactions, but received unclear or misleading answers from the Investment Trade Bank. The bank claimed that Saimaiti was purchasing a supermarket in Germany, but this explanation turned out to be false.
Properties Acquired with Questionable Funds
In fact, it appears that AKA Immobilien acquired the property itself using the same funds Saimaiti was sending. The company’s website described plans to build a 220-room hotel on the site, but these plans never came to fruition and the property was later sold to a Bavarian company.
Questions Remain
The investigation has raised questions about whether Deutsche Bank was satisfied with the explanations it received from Saimaiti’s bank or what other internal deliberations it made about his transactions. It also raises concerns about whether other banks involved in the transactions had been misled by Saimaiti or did not have full knowledge of his activities.
Lack of Transparency
Deutsche Bank declined to comment on specific clients, citing legal restrictions. The Abdukadyr family acknowledged receiving questions from an email address known to be used by Khabibula Abdukadyr, but said they could only provide information at a later date.
Non-Responsive Banks
The Keremet Bank and EcoIslamic Bank did not respond to requests for comment, with the latter stating that records from that period had been destroyed in line with regular practice.
Conclusion
The investigation highlights the challenges faced by financial institutions in detecting and preventing money laundering. It also underscores the need for greater transparency and cooperation between banks and regulatory authorities to combat financial crime.
Key Takeaways
- Deutsche Bank’s dealings with Kyrgyz banks have raised concerns about potential money laundering
- The bank received unclear or misleading answers from Saimaiti’s bank, leading to questions about its compliance with anti-money laundering regulations
- The investigation underscores the need for greater transparency and cooperation between banks and regulatory authorities to combat financial crime