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Deutsche Bank Anti-Financial Crime Russian Laundromat Philippe Vollot, Hinrich Vélcker Financial Crime Investigations Audit Committee of the Supervisory Board, April 24, 2018 Gea. Russian Laundromat Recap: The Russian Laundromat Scheme Money Laundering from 2011 to 2014 with alleged DB involvement The Russian Laundromat is a vast money laundering scheme 5 that handled at least USD 20bn! over a four-year period Loan paid out nasiel via fictitious lending activities, involving multiple 7 Fictitious of Russia loan core shell companies Company A “Type heelioom gene bened¥alargeleum a ‘of money to UK-based company B a Ais -— 5 Company B Other businesses in Russia — fronted by Moldovans ~ ‘would then guarantee these “loans”. 2 aig Company B would fail to return the “money” Obligation for es ai a guarantor as Moldovan corrupt judges would authenticate the “debt”, ft eee allowing Russian companies to transfer real money from f accounts in Russia to Moldindconbank in the Republic of Court $20 BILLION yy Moldova order Loan From here, the money went to company A’s account = guarantee at Trasta Komercbanka in Latvia Ti ‘Therewith, the whitewashed money is inside the EU and could be transferred globally one ‘The UK shell companies! beneficial owners were hidden behind unknown offshore shareholders im" Moldovan court Loan © Russian guarantor % fails The OCCRP? uncovered the scheme and identified a involved stakeholders, e.g. Russian oligarchs Until publication of the inteligence on the OCCRP2 website in March 2017, Deutsche Bank was not aware of this, money laundering scheme [may be 9 high as USD 80 ° ‘Only with this intelligence received is it now possible & organizes Crime and Comp for Deutsche Bank to start global investigations Deutsche Bank Philippe Vollot, Hinrich Volcker Anti-Financial Crime ‘Audit Committee of the Supervisory Board, April 24,2018 4 Strictly Confidential Russian Laundromat AFC Investigation Approach as of March 16, 2018 LP ‘The Guardian and Siiddeutsche Zeitung approached DB regarding allegations that assets were transferred TD illegally via DB's correspondent banking network ‘An AFC Global Special Investigation was kicked off promptly to identify DB's exposure and to fulfil regulatory Global news broke on the Russian Laundromat scheme and the alleged DB involvement. obligations (e.9,SAR' filing)