DWS Investment Management Americas, a subsidiary of Deutsche Bank, has agreed to pay a total of $25 million to settle two charges brought by the Securities and Exchange Commission (SEC).
According to the SEC, DWS failed to establish an anti-money laundering program for its mutual funds and made false statements regarding its environmental, social, and governance (ESG) investment process.
The settlement includes a payment of $19 million for the misstatements related to ESG and $6 million for the violation of anti-money laundering rules. It is important to note that DWS did not admit or deny the findings made by the SEC.
The SEC investigation revealed that DWS had provided misleading information about its use of ESG factors in its research and investment recommendations. The company allegedly lacked proper policies and procedures to ensure the accuracy of its claims regarding ESG offerings.
Additionally, the SEC accused DWS of causing the mutual funds it advised to neglect the implementation of a legally required program to prevent money laundering.
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