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U.S. DOJ extends monitor of Deutsche Bank for late reporting of DWS allegations -Breaking

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© Reuters. Pictured in Frankfurt, Germany on September 21st 2020, is the headquarters of Germany’s Deutsche Bank. REUTERS/Ralph Orlowski

FRANKFURT (Reuters). Deutsche Bank (DE:), Friday’s announcement by the U.S. Department of Justice revealed that the U.S. Department of Justice had extended the suspension of a Special Monitor after the unit failed to promptly report the allegations.

This agreement extends the surveillance of the bank as part of the Justice Department’s increased scrutiny of corporate misconduct.

U.S. Assistant Attorney General Lisa Monaco outlined policies in October that include increased scrutiny for repeat corporate offenders. It is currently examining how wide it can continue to delay prosecutions, in return for sanctions and assurances of compliance.

Deutsche Bank’s issue revolves around the claims of the DWS former head for sustainability that DWS overstated the use sustainable investing criteria when managing investment portfolios. DWS denies any allegations of “greenwashing”.

Deutsche Bank reported that the DOJ installed a Deutsche Bank monitoring device for issues other than banking.

Deutsche claimed that Deutsche was responsible for the violation due to “untimely report” of the allegations.

Deutsche also agreed on February 28 to extend its monitor’s life-span until February 2023.

Deutsche Bank and DWS declined to comment.

In exchange for a severe penalty, and promising to reveal any misconduct in the future and assist any investigation that may be ongoing, the agency reached an agreement with Deutsche Bank last year.

Despite the fact that agreement violations are rare historically, in recent months, the Justice Department issued notices of this nature as part of its efforts to eradicate corporate misconduct.

Sweden’s Ericsson, (BS:), has just disclosed that they received a DOJ breach notice. It is a reminder of the legal dangers for corporate agents accused of repeat offences.

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