DWS Investment Management Americas has agreed to pay $25 million to settle U.S. Securities and Exchange Commission allegations that the Deutsche Bank AG subsidiary made misleading statements and failed to incorporate environmental, social and governance factors into its mutual fund investment recommendations and did not develop an anti-money laundering program.

DWS marketed itself as a leader in the ESG space, including through its marketing of the ESG Integrated Products, the SEC claimed. But DIMA failed to implement specific global ESG integration policy provisions from August 2018 to late 2021, ultimately misleading clients, the agency alleged.