This fine is a component of a settlement in which Deutsche Bank Securities consented to a cease-and-desist order and a censure in addition to the monetary penalty, without acknowledging or disputing the findings.

The broker-dealer, which is required under the Bank Secrecy Act and rules set out by the Financial Crimes Enforcement Network of the U.S. Department of the Treasury, was slow in responding to SAR inquiries, the SEC said. These reports are essential for identifying transactions that may contain money obtained illegally, have no justifiable commercial purpose, or are intended to support criminal endeavors.

Deutsche Bank Securities demonstrated notable delays in their investigative process between April 2019 and March 2024, taking more than two years in at least two cases to file the necessary SARs. Associate Director Sheldon L. Pollock of the SEC's New York Regional Office said, "Even the best information gathered from SARs is of limited use if it's stale by the time it's provided to law enforcement." In addition to holding Deutsche Bank Securities responsible, this enforcement action serves as a sobering reminder to other market participants of how important timely reporting is.

The event highlights the wider regulatory focus on the timely and effective handling of financial surveillance information in order to stop financial system abuse and assist law enforcement in quickly detecting and responding to illicit activity.