EFTA01394817.pdf

Deutsche Bank Wealth Management ammonginmemmili, Wealth Management Americas New Business Initiatives December 2018 Prepared for: Oliver Esslinger Prepared on: 12/20/18 Prepared by: Melanie Keefe / BSO T wa .• , • r • EFTA01394817 BSO Observations • Insufficient experienced supervisory resources in key control groups across 1st and 2nd lines of defense • Distinct need for a qualified, experienced 2nd LoD who will respond promptly and knowledgably with reliable insight and engaged solutions • Resource evaluation for DCO / BSO / ORM / Legal / Compliance • Insufficient number of qualified licensed supervisors in a number of areas • More supervisors are having to delegate more responsibilities and then losing touch with the details • Not all have a solid understanding of the regulatory requirements of their role • LatAm business increases risks related to complex structures and potential for money laundering 1 Confidential EFTA01394818 Overview of WM Statistics Topic Title Commentary 1 3 Miami, 3 NY, 3 Geneva, RM: 2018 new hires 13 (Slide 3) 2 Chicago, 1 LA, 1 San Francisco 2 1547 235 LatAm; 1312 USO (Slide 4) New Clients / New Accounts 3 Latin America 235 accounts High 138, Moderate 56, Low 41 (Slide 5) Statistics 4 Miami High 61, Moderate 43, Low 36 140 accounts (Slide 6) Statistics 5 Approved 47; Overdue 1; Upcoming 1 Temporary Waivers / Exceptions 51 exceptions (Slide 7) (No Permanent Exceptions) 6 Client Acceptance Forum 2 new clients Navarro — Accepted (Slide 8) Escalations reviewed Patronato Benefico Oriental of the US - Rejected 7 Aromatiss and Long Term Insured Credit Fund (Slide 8) Complex Structures 2 8 Connect2Learn: 3 online trainings; 1 training Cross Border Training 4 trainings (Slide 10) delivered remotely 2 Confidential EFTA01394819 Relationship Manager - Hiring Statistics Est Month Employee Name / Expected Candidate Location (Joining / Leaving) Incremental EXTERNAL Hires Teofilo,Roberto 80628011 DBTCNA Miami 4 Hirsh,Johnathan 80635336 DBTCA Chicago 6 Sergio Stiglich 30628001 DBTCNA Miami 3 Reilly,William J 80621808 DBTCNA Miami Aguiar,Richard Manuel 80621810 DBNTC L.A. 9 Wendy McMillian 80586534 DBNTC San Fran 10 Lori Jackson 80155458 DBTCA NY 11 Santo Vicenzino 80621806 DBTCA NY 11 DB Internal RM Transfers Pablos Rodrigues,Ricardo 80626369 DBSA Geneva 3 Kiesel,Gregory J 30627017 DBTCA Chicago 5 Smith,Tazia D 30691725 DBTCA NY/L.A. 9 WMA Internal RM Transfers Ralf Fischer 30623005 DBSA Geneva von Sandersleben,Wolfgang-Friedrich 80623003 DBSA Geneva 10 Confidential EFTA01394820 New Clients / New Accounts Grand Row Labels High Low Moderate Total Chicago 1 28 10 39 Geneva 17 6 23 L.A. 12 43 69 124 Miami 61 36 43 140 NY 261 638 292 1191 San Francisco 2 10 18 30 Grand Total 354 755 438 1547 Grand Row Labels High Low Moderate Total Latam 138 41 56 235 Americas USO 216 714 382 1312 Grand Total 354 755 438 1547 4 — Confidential EFTA01394821 Latin America Business Row Labels - High Low Moderate Grand Total Latam 138 41 56 235 Americas USO 216 714 382 1312 Grand Total 354 755 438 154i Row Labels - Count of Account Id Latam 235 Geneva 23 Miami 51 NY 161 Observations: • Client Risk Program (CRP) issues raised for Venezuelan clientele • BIU reports have been ordered to maintain these relationships • LatAm clientele with domicile (either UBO or POA) in Netherlands • DBSI surrendering broker dealer license in Netherlands • 3 Fraud issues raised in 2018 • Mons internal fraud identified in 2018 • For the last 2-3 years, LatAm teams have not had appropriately licensed supervisors from a broker dealer perspective Confidential EFTA01394822 Miami Business Row Labels Count of Account Id =I Miami 14 J - r Latam 51 Josie Alonso 7 Pascal Landrove 18 Reynaldo Figueredo 25 Sergio Stiglich 1 Americas USO 89 Carolyn Magliaro 25 Oti Roberts 34 Rachel Maglicic 15 Roberto Teofilo 15 Miami 140 High 61 Low 36 Moderate 43 e Confidential EFTA01394823 Temporary Waivers and Exceptions • Refer to Excel file for details: All Cust A➢ Accounts Temp Exceptions • 1 Temporary Exception Overdue (shown in red) • 3 Temporary Exceptions Future Due (in yellow) — Jan 2019 • 47 Temporary Exceptions already Approved and Deadline Met (in green) • 0 Permanent Exceptions EFTA01394824 Client Acceptance Forum • 2 New Clients reviewed in CAF: Client CAF CAF Date Client Name Type Decision Banker Joanne 3/18/2018 Navarro Prospect Accepted Jensen 4/11/2018 Patronato Benefico Oriental of the Untied States Prospect Rejected Oti Roberts ilo Navarro CAF to Patronato CAF Memo Memo I — Confidential EFTA01394825 Complex Structures • Two KYC's for entities with complex structures Customer Relationship Customer Client Since Risk Customer Customer Number Customer Name * Type Date Rating Owner Latam? Relationship Number BELMONT, 570587 Aromatiss S.A.S Organization 4/27/2018 High Ralf Fischer F RELATIONSHIP 290654 Long Term Insured Credit Fund Stewart ZUECH, CHRIS 583987 LLC Organization 10/29/2018 Moderate Oldfield RELATIONSHIP 583134 • Aromatiss (Global Print and Org Chart) na a Global Print Aromatiss Org Aromatiss Chart • Long Term Insured Credit Fund (Global Print and LLC LTICF) a I a Global Print LTICF LLC LTICF g Confidential EFTA01394826 Cross Border Training Connect2Learn trainings (provided to all WM employees): • Anti-Financial Crime - KYC Level 2 Policy Version 3.2 Training for WM Staff • Delivered remotely on 4/17/18 • Compliance - Cross Border Risk Management Training • Completion due by 12/9/18 • Anti-Financial Crime - Anti-Fraud, Bribery and Corruption • Completion due by 12/9/18 • Anti-Financial Crime - Anti-Money Laundering, Counter Terrorist and Proliferation Financing • Completion due by 1/28/19 10 EFTA01394827 Additional Details: Latin America Strategy Approach Ongoing strategy review: Our approach to defining the path to growth for DB's WM LatAm business Developments in recent years have shaped the WM LatAm franchise Approach to defining the growth strategy for DB WM LatAm "Retreat and de-risking" • Client Risk Programme 1: Taking stock 2015 • Exit of onshore presence 2016 • Reduction of market coverage • Transparency on • Agree focus clients, • Review with control business setup, products, & markets functions • Adjustments in risk profile performance & • Review positioning • Define path to challenges target state Turnaround challenges' vs. future focus areas • First view on the and identify growth / • Translate financial External events (DB news flow, LatAm market de-emphasis areas aspirations into 5- DoJ, share price) 2016 • First view on DB Formulate financial year financial plan • Departure of 50% of • Detail TOM WM LatAm's clients aspirations 2017 relationship managers (RM) • MiFID 2 in Germany and EU Interview round with Strategy paper that • Actionable growth Key deliverables experts from articulates: opportunities "Growth focus" coverage and a) Target clients (organic & products b) Target products inorganic) • Key management hires (Head c) Target markets • High level of LatAm, Team Head Geneva) DB WM LatAm d) Booking center transformation 2018+ • First RM growth hires in Miami Factbook setup roadmap • Definition of growth strategy e) Target franchise size 11 - Confidential EFTA01394828