EFTA Document EFTA01394817

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 r T wa . • , • • 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 (Slide 3) 2 (Slide 4) 3 (Slide 5) 4 (Slide 6) 5 (Slide 7) RM: 2018 new hires New Clients / New Accounts Latin America Statistics Miami Statistics Temporary Waivers / Exceptions 6 Client Acceptance Forum (Slide 8) Escalations 7 (Slide 8) 8 (Slide 10) Complex Structures Cross Border Training 13 3 Miami, 3 NY, 3 Geneva, 2 Chicago, 1 LA, 1 San Francisco 1547 235 LatAm; 1312 USO 235 accounts High 138, Moderate 56, Low 41 140 accounts High 61, Moderate 43, Low 36 51 exceptions Approved 47; Overdue 1; Upcoming 1 (No Permanent Exceptions) 2 new clients Navarro — Accepted reviewed Patronato Benefico Oriental of the US - Rejected 2 Aromatiss and Long Term Insured Credit Fund 4 trainings Connect2Learn: 3 online trainings; 1 training delivered remotely Confidential 2 EFTA01394819 Relationship Manager - Hiring Statistics Employee Name / Expected Candidate Location Est Month (Joining / Leaving) Incremental EXTERNAL Hires Teofilo,Roberto Hirsh,Johnathan Sergio Stiglich Reilly,William J Aguiar,Richard Manuel Wendy McMillian Lori Jackson Santo Vicenzino 80628011 80635336 30628001 80621808 80621810 80586534 80155458 80621806 DBTCNA DBTCA DBTCNA DBTCNA DBNTC DBNTC DBTCA DBTCA Miami Chicago Miami Miami L.A. San Fran NY NY 4 6 3 9 10 11 11 DB Internal RM Transfers Pablos Rodrigues,Ricardo Kiesel,Gregory J Smith,Tazia D 80626369 DBSA Geneva 30627017 DBTCA Chicago 30691725 DBTCA NY/L.A. 3 5 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 Geneva Miami NY 235 23 51 161 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 =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 Count of Account Id Miami High Low Moderate 140 61 36 43 Confidential e 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: CAF Date Client Name Client Type CAF Decision Banker 3/18/2018 Navarro Prospect Accepted Joanne Jensen 4/11/2018 Patronato Benefico Oriental of the Untied States Prospect Rejected Oti Roberts ilo Navarro CAF Memo to Patronato CAF Memo — Confidential I EFTA01394825 Complex Structures • Two KYC's for entities with complex structures Customer Number Customer Name * Type Client Since Date Customer Risk Rating Customer Owner Latam? Relationship Relationship Customer Number 570587 Aromatiss S.A.S Organization 4/27/2018 High Ralf Fischer BELMONT, F RELATIONSHIP 290654 583987 Long Term Insured Credit Fund LLC Organization 10/29/2018 Moderate Stewart Oldfield ZUECH, CHRIS RELATIONSHIP 583134 • Aromatiss (Global Print and Org Chart) a Global Print Aromatiss na Aromatiss Org Chart • Long Term Insured Credit Fund (Global Print and LLC LTICF) a I a Global Print LTICF LLC LTICF Confidential g 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 2015 2016 2016 2017 2018+ "Retreat and de-risking" • Client Risk Programme • Exit of onshore presence • Reduction of market coverage • Adjustments in risk profile Turnaround challenges' External events (DB news flow, DoJ, share price) • Departure of 50% of relationship managers (RM) • MiFID 2 in Germany and EU "Growth focus" • Key management hires (Head of LatAm, Team Head Geneva) • First RM growth hires in Miami • Definition of growth strategy Approach to defining the growth strategy for DB WM LatAm Key deliverables 1: Taking stock • Transparency on business setup, performance & challenges • First view on the LatAm market • First view on DB WM LatAm's clients Interview round with experts from coverage and products DB WM LatAm Factbook • Agree focus clients, products, & markets • Review positioning vs. future focus areas and identify growth / de-emphasis areas Formulate financial aspirations Strategy paper that articulates: a) Target clients b) Target products c) Target markets d) Booking center setup e) Target franchise size • Review with control functions • Define path to target state • Translate financial aspirations into 5- year financial plan • Detail TOM • Actionable growth opportunities (organic & inorganic) • High level transformation roadmap - Confidential 11 EFTA01394828