Deutsche Bank

Finances

Post JPMorgan banking services

Between November 2012—when a private-banker who had handled Jeffrey Epstein at JPMorgan joined Deutsche Bank—and the off-boarding letter dated 21 December 2018, the German lender maintained more than forty accounts for Epstein and related entities.

During that span Deutsche Bank accepted him as a "high-risk" client, processed millions in wires to alleged co-conspirators, allowed more than $800,000 in cash withdrawals, and over-ruled its own compliance staff twice—until the Miami Herald's Perversion of Justice series prompted senior management to end the relationship seven months before Epstein's 2019 arrest.1

  Background: why Deutsche Bank stepped in

JPMorgan exit (March–July 2013). Internal compliance e-mails later released in U.S. Virgin Islands litigation show JPMorgan officials urging "exit this relationship," and the bank finally dropped Epstein in mid-2013, freeing him to move his fortune.2

Recruitment by a former JPMorgan banker. That banker joined Deutsche Bank's U.S. wealth unit in Nov 2012, pitched Epstein as a lucrative prospect, and opened talks in spring 2013.

  Detailed timeline (2012-2018)

DateEvent inside Deutsche BankSource
Nov 2012Relationship-manager who handled Epstein at JPMorgan joins Deutsche Bank.
Apr 2013On-boarding memo prepared; senior executive ("EXECUTIVE-1") gives informal approval despite public sex-offender status.
Aug 2013First personal and trust accounts opened; bank now formally lists Epstein as a client.
Oct 2013Compliance officer flags that "Butterfly Trust" beneficiaries include named co-conspirators; alert cleared relying on the earlier verbal approval.
Jan 22 2015Two executives visit Epstein at his Manhattan home for reputational due-diligence before risk-committee meeting.
Jan 30 2015Americas Reputational Risk Committee (ARRC) votes to "continue business as usual" with three monitoring conditions—never passed to the relationship team.
2015-2018Attorney acting for Epstein withdraws >$800,000 in cash; bank files currency-transaction reports but never asks for stronger explanation.
2013-2018At least 120 wires (~$2.65 million) go to alleged co-conspirators or young women; >$7 million in settlement cheques and >$6 million in legal-fee wires processed.
Early Nov 2018Miami Herald investigation resurfaces 2008 plea deal; wealth-management leaders reassess "reputational risk."
21 Dec 2018Deutsche Bank sends formal letter to Epstein: all accounts will be closed and references provided so he can move elsewhere.1

  Red-flag patterns the bank missed

Deutsche Bank's consent order details how its systems ignored: (1) monthly cash activity averaging over $200,000; (2) wires to individuals already identified in public court filings as recruiters; and (3) public lawsuits reopening in June 2014 and January 2015 that should have triggered enhanced review.

  After-effects (post-timeline)

The New York Department of Financial Services fined the bank $150 million on 7 July 2020 for these compliance failures—the first regulatory action against any lender linked to Epstein.3

Bottom line: Before Epstein's July 6 2019 arrest, Deutsche Bank's six-year relationship unfolded in three phases—rapid onboarding (2013), nominal risk review (2015), and quiet off-boarding (late 2018)—with systematic compliance lapses at every stage.

  Footnotes

  1. Doe v. Deutsche Bank Aktiengesellschaft (PDF), ClassAction.org 2

  2. JPMorgan was urged to cut ties..., Reuters

  3. Deutsche Bank pays New York $150 million..., Axios

Published on January 15, 2020

3 min read