Deutsche Bank flagged Jeffrey Epstein's transactions, reports say

By FinancialsFOXBusiness

The many contradictions of Jeffrey Epstein

FBN's Charlie Gasparino on the allegations against financier Jeffrey Epstein.

Jeffrey Epstein used Deutsche Bank’s private-wealth division to manage his fortune, including moving money overseas via transactions the German bank eventually flagged to authorities, reports said Tuesday.

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The wealthy financier, who is charged with sex trafficking of minors, moved millions of dollars in cash and securities through dozens of accounts created under Deutsche Bank’s private banking division, The Wall Street Journal reported. Epstein and the bank began their relationship in 2013, but employees started severing ties with the accused sex trafficker last year following a Miami Herald report on his past sexual abuse allegations.

Deutsche Bank struggled to close all accounts Epstein had access to because they were unaware of some that were created, The New York Times reported. Some accounts linked to Epstein were reportedly made under different names. The businessman also had access to other associates’ accounts.

Bank executives said they believe all of Epstein’s accounts are now shut down.

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“Deutsche Bank is closely examining any business relationship with Jeffrey Epstein, and we are absolutely committed to cooperating with all relevant authorities,” a bank spokesperson said to The Times.

Bank employees also looked for clues that showed Epstein was using his finances to run a sex trafficking ring. Sources told The Times that some transactions were flagged to the Treasury Department in a suspicious activity report earlier this year.

Deutsche Bank is still conducting an internal investigation into its relationship with Epstein, including what he used his accounts for and where the money went.

Deutsche Bank has weathered several controversies in the last few years. It paid $7.2 billion in a settlement with the U.S. Justice Department for misleading investors in the sale of mortgage-backed securities in the time period leading up to the financial crisis. Two years earlier, the bank paid a $2.5 billion settlement to regulators in the U.S. and U.K. for manipulating interest rates.

The German bank announced in early July that it would cut 18,000 jobs by 2022.

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Epstein was arrested in early July and charged with sex trafficking minors. A judge denied the 66-year-old bail last Thursday, saying the financier posed a danger to the public and could use his "great wealth and vast resources" to flee the country.

Epstein has pleaded not guilty to sex trafficking charges.

Fox Business’ Matthew Kazin and The Associated Press contributed to this report.