![DWS must pay $25 million to settle US charges for ESG misstatements and other violations](https://i-invdn-com.investing.com/trkd-images/LYNXMPEJ8O0KO_L.jpg)
©Reuters. The U.S. Securities and Exchange Commission (SEC) headquarters are seen in Washington, DC, U.S., May 12, 2021. REUTERS/Andrew Kelly
NEW YORK (Reuters) – Deutsche Bank-controlled investment firm DWS will pay $25 million to settle charges over misstatements regarding its environmental, social and governance (ESG) investments and failures in policies to prevent money laundering, US regulators said on Monday.
DWS Investment Management Americas, a registered investment advisor, has made “concerning” misstatements regarding its ESG investing process, the U.S. Securities and Exchange Commission said in a statement. The company positioned itself as a leader in ESG investing, but failed to implement related policies as it promised investors from August 2018 to the end of 2021, the SEC said.
DWS representatives, who neither admitted nor denied the SEC’s findings, did not respond to requests for comment.
In addition, regulators found that DWS had failed to develop an anti-money laundering program for investment funds as required by law. The company did not have systems “reasonably designed” to flag potential money laundering, the SEC said in a separate order.