Germany's Federal Financial Supervisory Authority, BaFin, has imposed a combined fine of €23.05 million on Deutsche Bank AG in respect of three separate regulatory failures identified across different areas of the bank's business. The enforcement action encompasses misconduct related to currency derivatives sales in Spain, the recording of telephone-based investment advice, and compliance with account-switching obligations under German retail banking law.
BaFin's decision spans Deutsche Bank's corporate banking operations in a foreign market, the retail investment advisory function of its Postbank branch, and Postbank's obligations towards customers seeking to switch their bank accounts.
DERIVATIVES SALE IN SPAIN DRAWS LARGEST PENALTY
The single largest component of the fine, amounting to €14.8 million, relates to the sale of currency derivatives to customers in Spain. BaFin found that Deutsche Bank had breached organisational requirements under the German Securities Trading Act because it took too long to investigate the infringements linked to these sales and to remedy the shortcomings.
The remaining two elements of the enforcement action were directed at Deutsche Bank's Postbank division, the bank's retail banking arm. A fine of €4.6 million was imposed for Postbank's failure to make and retain adequate records of investment advice provided to clients over the telephone. The third and final component of the penalty, at €3.65 million, relates to Postbank's repeated non-compliance with the German Payment Accounts Act in respect of account-switching procedures.
DECISION STATUS
The fine was decided on 4 February 2025 and published on 4 March. BaFin said the administrative fine order is final and binding.