https://www.pymnts.com/news/security-and-risk/2018/deutsche-bank-money-laundering-investigation-virgin-islands/

The center of the money laundering investigation at Deutsche Bank lies at a tiny unit that was barely able to eke out a profit and had been up for sale since the early part of 2016, reported Financial Times.

Citing several people briefed on the matter, the publication reported that the two-day raid last week of Deutsche Bank offices was aimed at finding evidence on a British Virgin Islands-based unit that was part of the bank’s Global Trust Solutions (GTS) business, which had been up for sale in March of 2016. At that time, the business was handling trusts in low-tax locations, including Germany and the Virgin Islands, generating just a tiny portion of Deutsche Bank‘s overall annual revenue. In October of 2017, it announced a deal to sell the unit to N.T. Butterfield & Son, with the sale completed at the end of March. Details of the transaction were kept quiet, noted the report.

One of GTS’ legal entities was the British Virgin Islands-based Regula Limited, which, was named in the Panama Papers and, according to people familiar with the matter, is at the heart of the money laundering inquiry. In 2016, it operated trusts for around 900 clients, with €311m in assets. The vast majority of the clients were located in Asia-Pacific and Latin America, with only a small portion located in Germany. German authorities believe that Deutsche Bank clients transferred money that was tied to illegal activities to offshore accounts, and that the bank circumvented its legal duty to flag those transactions as suspicious.

The report noted that Deutsche Bank’s decision to sell the offshore trust business was part of a wider restructuring of its wealth management unit. The program, which was called “Protect, Transform, Grow,” was aimed at reducing the business risks of serving super-rich, private clients. The wealth management unit at Deutsche Bank has reduced the number of countries in which it operates, and screened clients living in one country but operating an account in another country for extra information, noted Financial Times.

Ripple, the blockchain company that owns XRP, the digital currency, has joined forces with NEM, Fetch.AI, and EMURGO/Cardano to create a new association that represents the interest of blockchain and cryptocurrency business in Europe.

According to a report in The Next Web, the group, dubbed Blockchain for Europe, says its the first unified voice for the industry in Europe. The group is focused on growing the understanding of the technology and highlighting the “true nature” and potential of blockchain technology, reported The Next Web. “Ripple is delighted to be a founding member of Blockchain for Europe,” said Ripple Head of Regulatory Relations Dan Morgan in the report. “This is a critical time for policymakers in Europe as they seek to develop the right regulatory framework to capture the benefits of both digital assets and blockchain technology.”

Part of the agenda will focus on ensuring the European Union and member states create regulation that will stimulate the growth of blockchain across the bloc. “There is a lack of unbiased information especially when it comes to the open and decentralised [sic] application of the technology,” added NEM Co-Founder Kristof Van de Reck in the report. “We aim to provide insights which are not tailored to the agenda of specific organisations or stakeholders.”

Late last month the new group hosted a Blockchain for Europe Summit which include four of the biggest European Parliament groups. The summit drew global blockchain players who discussed the role the technology can have in transportation, healthcare, governance and other use cases. Speakers at the event focused on the benefits of blockchain technology for companies and lawmakers.

The group behind Blockchain for Europe isn’t the only player eyeing the technology. Late last month Amazon Web Services (AWS) announced it was rolling out two new solutions designed to enhance the transparency of corporate transactions for companies that have full audit requirements. AWS is launching Amazon Quantum Ledger Database, as well as Amazon Managed Blockchain — solutions that Amazon Web Services CEO Andy Jassy said are “something that a lot of companies need.”