REUTERS
Deutsche Bank announced curtailing of its Russian Corporate Banking and Securities (CB&S) business in Russian within the framework of reviewing the geography of its presence, Russian information agency TASS reported with reference to the bank's statement issued on Thursday.
Such a decision was made to reduce complexity of processes, costs, risks and capital use, according to a report.
The Russian CB&S business of the bank will continue servicing its customers from international offices. It is expected that the transitional period and closing of CB&S unit in Russia will continue until the end of 2015, the bank said.
At the same time, bank’s Global Transaction Banking (GTB) unit continues its operations in Russia, Deutsche Bank said.
The Bank will continue servicing customers with private wealth, but the administration and accounting will be located outside Russia.
Earlier, The Wall Street Journal reported that Deutsche Bank was considering dismissal of 200 employees in Russia.
"Deutsche Bank AG is considering sweeping changes that could include scaling back or closing operations in some countries as well as overhauling the bank's executive ranks," the publication wrote.
The Russian cuts could affect around 200 investment-banking employees there, people familiar with the matter said. Hundreds of other Deutsche Bank employees who work in technology and other areas in Moscow and St. Petersburg wouldn't be affected, according to the report.
Concern about potential money-laundering by Russian clients, through equity trades handled by Deutsche Bank, has spurred an internal review and investigations by European and U.S. regulators.
Deutsche said in July that it was reviewing stock trades by "certain clients" done through the bank's Moscow and London offices. The people said the trades in question were worth billions of dollars.
The bank also said it was reviewing its internal controls designed to prevent transfers of money that violate international money-laundering rules.