A Deutsche Bank subsidiary has agreed to pay a total of $25 million in penalties for anti-money laundering violations and misstatements about investments, the US Securities and Exchange Commission (SEC) announced Monday.

Charges against DWS Investment Management Americas Inc. include the failure to develop a mutual fund anti-money laundering (AML) program, and misstatements regarding its environmental, social and governance investment process, the SEC said in a statement.

“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,” said Gurbir S. Grewal, director of the SEC's Division of Enforcement.

“Whether advertising how they incorporate ESG (environmental, social and governance) factors into investment recommendations or making any other representation that is material to investors, investment advisers must ensure that their actions conform to their words,” said Sanjay Wadhwa, deputy director of the SEC’s Division of Enforcement and head of its Climate and ESG Task Force. (Anadolu Agency)