Deutsche Bank faces Money Laundering as regards Taib ties

The German Federal Financial Supervisory Authority (BaFin), the supervisory authority for financial institutions in respect of money laundering legislation, is investigating Deutsche Bank’s business relations with the family of Malaysian potentate Abdul Taib Mahmud.

BaFin has launched investigations into the Deutsche Bank as regards its business relations with the Malaysian Taib family, which has been confirmed by the German Federal Ministry of Finance.

Finance Minister Wolfgang Schäuble, the Federal Ministry of Finance representative, stated that the Ministry requested BaFin to explain and check the situation and, if the Financial Supervisory Authority considers it appropriate, to instigate supervisory measures. The Authority has already started clarifying the situation.

The Bruno Manser Fonds, the Hamburg “Rettet den Regenwald”(Rainforest-Rescue) Association and the Society for Threatened Peoples drew the attention of the government of Germany to the Deutsche Bank’s close business ties with Abdul Taib Mahmud and demanded to freeze all Taib assets in Germany.

Since 2004, Deutsche Bank has processed transactions worth hundreds million EUR for the Sarawak government and is engaged in a joint venture in Malaysia with the Cahya Mata Sarawak company (CMS). CMS is controlled by the Taib family. CMS and Deutsche Bank are the principal shareholders of the finance company K & N Kenanga Holdings, domiciled in Kuala Lumpur, with its subsidiary Kenanga Deutsche Futures, an accredited broker at the Malaysian stock exchange.

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