Bafin fines Deutsche Bank for anti-money laundering flaws: source

FRANKFURT (Reuters) – German financial watchdog Bafin last year imposed a fine of 40 million euros ($44 million) on Deutsche-Bank for flaws in its systems designed to prevent money-laundering, a person close to the matter said.

Bafin in February closed special audits on Deutsche Bank after the bank pledged to redress its shortcomings and implemented some reforms. In May, the regulator praised changes the lender was making to its business approach.

According to its annual report, Bafin fined German banks a total of just over 40 million euros last year for failing to establish effective anti-money laundering measures.

Deutsche Bank and Bafin declined to comment on the fine, which was first reported by weekly Der Spiegel.

(Reporting by Arno Schuetze and Jonathan Gould; Editing by Georgina Prodhan)