Deutsche Bank has agreed to pay more than
$553.6m to settle a case with the US Department of Justice and the
Internal Revenue Service related to its involvement in fraudulent
tax shelters.
Its non-prosecution agreement concerns
tax-oriented transactions between 1996 and 2002 when the German
bank participated in about 15 tax shelters involving more than
2,100 clients through its US subsidiary Alex Brown.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Deutsche Bank’s $553.6m payout covers the
total fees the bank collected during the period, including taxes
and interest the IRS was unable to retrieve then, and a civil
penalty exceeding $149m.
Deutsche prepared for
payment
“Deutsche Bank is pleased that this
investigation, which concerned transactions that ceased more than
eight years ago, has come to a resolution,” the bank said in a
statement.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe statement continued: “Since 2002, the bank
has significantly strengthened its policies and procedures to
ensure strict adherence to the law and the highest standards of
ethical conduct.”
The bank said that the fine will not impact on
current net income as it had previously taken “appropriate
provisions” to pay the full amount.
