Deutsche Bank AG has given around 1,000 investment-banking clients a month or less to hand over company-ownership information and other documentation in the bank’s protracted effort to close compliance gaps, according to the bank and people familiar with the demands.
The “know your customer,” or KYC, letters have gone to asset managers and corporate clients in recent weeks as part of an continuing, multiyear effort, some of the people said.
The clients have been told to provide the information by the end of June or face the risk of getting cut off from new loans and other services, one of the people said.
“This is a standardized notification that has been sent to thousands of clients globally,” a Deutsche Bank spokeswoman said. The latest wave of letters, earlier reported by the Financial Times, pertains to certain products and requirements by the bank to screen transactions to prevent money laundering and other financial crimes by clients, the bank said.
The German lender’s anticrime teams, along with managers inside the investment bank and other businesses, over the past several years have been going through thousands of customer accounts to identify high-risk clients and complete know-your-customer paperwork, some of it deficient, people inside and outside the bank say.