Deutsche Bank has agreed to pay nearly 554 million dollars and admit criminal wrongdoing in a tax fraud case that generated billions of dollars, the bank and New York prosecutors said Tuesday.
The German bank admitted taking part "in financial transactions which furthered fraudulent tax shelters that generated billions of dollars in US tax losses," the office of a New York attorney general said in a statement.
The deal will "resolve an investigation related to the Bank�s participation in various tax-oriented transactions for clients from approximately 1996 to 2002," Deutsche Bank said, also in a statement.
The 553.6 million dollar payment represents the total of the fees Deutsche Bank earned from its participation in the fraud, taxes and interests that US authorities lost as well as a 149-million-dollar fine.
An independent expert will oversee the implementation of measures "designed to ensure that Deutsche Bank does not participate in future transactions that may be used to defraud the Internal Revenue Service," the attorney general said.
The bank was also banned from any involvement in any similar tax products, the statement added.
Deutsche Bank said it was "pleased" the investigation was over, adding that the fine will not have any impact on current net income.
"Since 2002, the Bank has significantly strengthened its policies and procedures as part of an ongoing effort to ensure strict adherence to the law and the highest standards of ethical conduct," it said.
There were no further details on the fraud.
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