Finances

Why did Deutsche Bank pay million to Epstein victims?

The Timeline

After JPMorgan terminated Epstein as a client (approximately 2013), Deutsche Bank provided banking services from approximately 2013 to 2019. This period covered Epstein’s full time as a registered sex offender.

The Due Diligence Question

Deutsche Bank took Epstein as a client with full knowledge that he was a convicted registered sex offender. The bank’s due diligence process either failed to identify this fact or identified it and proceeded anyway either failure constitutes a compliance failure.

The Internal Concerns

Like JPMorgan, Deutsche Bank had internal compliance concerns about the Epstein relationship that were not acted upon promptly. The settlement reflected evidence that warning signs were noted and ignored.

The Million Settlement

Deutsche Bank agreed in 2023 to pay million to settle claims from Epstein victims. Like the JPMorgan settlement, this was a class action representing multiple survivors.

The Regulatory Consequences

Deutsche Bank also faced regulatory action from the New York State Department of Financial Services separately from the civil settlement, paying a million fine for compliance failures related to the Epstein relationship.

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