Deutsche Bank AG (ETR:DBK) has tightened its “know your customer” (KYC) processes in an attempt to prevent unscrupulous customers and employees from conducting illegal transactions through the bank.
The German lender has sent out letters to thousands of its investment banking clients across the globe requesting them to provide detailed descriptions of their businesses and to supply them with legal documents to support their claims.
The bank has requested its customers to provide information on the ownership structures of their companies, which will help the lender weed out shell companies that have no physical operations but are being used by individuals to launder money through the global financial system.
The move comes as the German lender is trying to get back into the good graces of global regulators following multiple controversies that have tarnished the bank’s reputation, such as the $20 billion Russian money-laundering scandal.
Deutsche Bank is also in the process of restructuring its investment banking business, which has struggled with falling revenues in the recent past, as it searches for new revenue streams for the division.