(Bloomberg) -- New York state’s banking regulators are investigating Deutsche Bank AG’s relationship with the disgraced late financier Jeffrey Epstein, according to a person familiar with the matter.
The New York Department of Financial Services has been looking into the bank’s dealings with Epstein as part of a broader look into the German lender’s compliance and controls, according to this person.
The review of the Epstein accounts was reported earlier Tuesday by the New York Times. Citing people familiar with the matter, the Times said the investigation could result in an enforcement action against the bank as soon as this month.
Epstein was arrested last year on federal sex-trafficking charges more than a decade after he pleaded guilty to Florida state charges of soliciting an underage girl for sex. His death in a New York City jail was ruled a suicide.
“Our reputation is our most precious asset. We regret the decision to associate with Epstein,” said Daniel Hunter, a Deutsche Bank spokesman.
According to the anonymous sources cited by the Times, DFS is looking into the bank’s decision to continue doing business with Epstein even after bank compliance officers alerted the federal government to several transactions in which Epstein sent money overseas in 2015.
©2020 Bloomberg L.P.
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