Fed Assesses First Penalty for Volcker Rule Violation
The Board of Governors of the Federal Reserve System has assessed its first penalty for violation of the Volcker Rule against Deutsche Bank AG.
The Volker Rule required Deutsche Bank’s Chief Executive Officer to annually attest to the Board of Governors in writing that the bank had in place processes to establish, maintain, enforce, review, test, and modify required compliance programs. In March 2016, Deutsche Bank’s Co-CEO executed and delivered the required attestation which identified the existence of weaknesses in the bank’s Volcker Rule compliance program, including governance, design, and operational deficiencies across key compliance pillars and the design of reporting mechanisms.
The Board of Governors then determined that Deutsche Bank failed to establish a compliance program reasonably designed to ensure and monitor compliance with Volcker Rule requirements and assessed a civil money penalty in the amount of $19.71 million. Deutsche Bank agreed to the penalty and also agreed to take corrective actions.
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