Deutsche Bank Says Software to Detect Money Laundering Had a Bug

Deutsche Bank acknowledged on Wednesday that it had used faulty software to screen customer transactions for suspicious activity, another blow to the lender’s reputation as top executives prepare to face restive shareholders at its annual meeting. Already under fire for lax money-laundering controls, the bank confirmed the essence of a report in Germany’s Süddeutsche Zeitung newspaper that revealed software problems in its efforts to curb such activity. Coming after Deutsche Bank’s share price reached an all-time low this week, the newspaper report has helped fuel an extraordinary level of shareholder anger even by the standards of the perpetually troubled lender.

Source: www.nytimes.com