Deutsche Bank AG's DWS asset management arm agreed to pay a total of $25 million to settle Securities and Exchange Commission probes into alleged greenwashing and anti-money laundering control lapses.
"The SEC's order finds that DWS advised mutual funds with billions of dollars in assets yet failed to ensure that the funds had an AML program tailored to their specific risks, as required by law," Gurbir Grewal, the director of the SEC's enforcement division, said in a statement on Monday.
DWS has been under scrutiny by various agencies including the SEC since a former employee, Desiree Fixler, went public over two years ago with claims that the asset manager had inflated its ESG credentials. The allegations and ensuing probes hit the firm's share price as investors sought to assess the financial impact.
A spokesman for DWS said the firm is "pleased that the SEC recognized our cooperation in the investigation and our remediation efforts."
