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Report: Trump, Kushner Bank Transactions Raised Red Flags

Sources say Deutsche Bank decided not to inform feds of staff recommendations
By Rob Quinn,  Newser Staff
Posted May 20, 2019 6:09 AM CDT
Updated May 20, 2019 6:57 AM CDT
The Deutsche Bank headquarters is seen behind a lamp ahead of the annual press conference in Frankfurt, Germany, Friday, Feb. 1, 2019.   (AP Photo/Michael Probst)
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(Newser) – Transactions linked to President Trump and his son-in-law raised red flags in a Deutsche Bank computer system designed to detect money laundering in 2016 and 2017, but the bank decided not to act, reports the New York Times, citing "five current and former bank employees." The sources, including former Deutsche Bank anti-money laundering specialist Tammy McFadden, say employees recommended that transactions involving entities controlled by Trump and Jared Kushner be reported to federal authorities. They say the rejection of the recommendation was standard bank procedure when lucrative clients were involved. "You present them with everything, and you give them a recommendation, and nothing happens," McFadden says.

McFadden says the bank, which is Trump's biggest creditor, fired her last year after she raised concerns about its practices. She says managers rejected her concerns about transactions between Kushner Companies and Russian individuals and about the lack of the usual oversight for clients connected to Trump. Other employees say "suspicious activity reports" were produced in connection with Trump entities, including the now-defunct Trump Foundation. A Trump Organization spokeswoman tells Reuters that the Times story is "absolute nonsense.” "We have no knowledge of any ‘flagged’ transactions with Deutsche Bank," she says. "In fact, we have no operating accounts with Deutsche Bank." (Last month, Trump sued to stop banks from turning his business records over to House investigators.)

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