The US Federal Reserve (Fed) said yesterday it was fining Deutsche Bank US$41 million (RM175.61 million) for deficiencies in its money laundering controls after a scandal involving billions of dollars in Russian roubles.

The actions address "unsafe and unsound" practices at the German bank's US banking operations, the US central bank said in a news release.

The Fed found Deutsche Bank's US banking operations failed to maintain an effective programme to comply with US anti-money laundering laws and US law on bank secrecy.

A consent order accompanying the fine requires Deutsche Bank to improve its senior management oversight and controls related to compliance by the US banking operations with anti-money laundering laws.

The bank said it intended to implement all measures imposed by the Fed in accordance with its expectations.

US authorities say about 10 billion dollars worth of roubles was laundered through the bank between 2011 and 2015 via Moscow, New York and London.

According to the allegations, the bank missed opportunities to detect the money laundering due to the failure of its oversight authority.

Deutsche Bank in January agreed on a settlement of US$425 million (RM1.82 billion) with the New York State Department of Financial Services in connection with the money laundering scheme.

The affair has also been raised in connection with the business affairs of US President Donald Trump.

Democrats in the US House of Representatives last week demanded information from the bank about accounts and credits belonging to Trump, who is believed to have more than US$340 million (RM1.45 billion) in loans from the bank.

- dpa