AmazonScience/document-haystack

116 – Provisions2Movements by class of provision3in € m.4Operational5risk6Civil7litigations8Restructuring –9staff related Other Total10Balance as of 1 January 2022  14  1  0  1  16 11New provisions  8  7  0  20  35 12Amounts used  1  0  0  12  13 13Unused amounts reversed  2  0  0  0  2 14Effects from exchange rate 15fluctuations/unwind of discount  0  0  0  0  0 16Transfers  0  0  0  1  1 17Balance as of 31 December 2022  19  8  0  9  36 18Balance as of 1 January 2023  19  8  0  9  36 19New provisions  4  1  0  37  42 20Amounts used  2  1  0  23  25 21Unused amounts reversed  1  0  0  2  3 22Effects from exchange rate 23fluctuations/unwind of discount  0  0  0  0  0 24Transfers  0  0  0  0  0 25Balance as of 31 December 2023  21  8  0  21  50 26Classes of Provisions27Operational risk is the risk of loss resulting from inadequate or failed internal processes, 28people and systems, or from external events. The definition used to determine provisions 29from operational risk differs from the risk management definition, as it excludes risk of loss 30resulting from civil litigations or regulatory enforcement matters. 31Civil litigation provisions arise out of current or potential claims or proceedings alleging non-32compliance with contractual, other legal or regulatory responsibilities, that have resulted or 33may result in demands from clients, customers, counterparties, or other parties in civil 34litigations. 35Restructuring provisions arise out of restructuring activities and cover termination benefits. 36Other provisions include provisions for regulatory enforcement and several specific items 37arising from a variety of different circumstances not covered under the named classes above. 38The provisions recognized by the Group are considered short-term nature with the 39expectation of usage over the next year.40Current Individual Proceedings 41The Group operates in a large number of jurisdictions in which there are different legal and 42regulatory requirements. By the nature of its business, from time to time, the Group becomes 43involved in litigation, arbitration proceedings and regulatory investigations. For the matters 44for which a reliable estimate can be made, the provisions the Group has recognized for civil 45litigation and regulatory enforcement matters as of such dates are set forth collectively in the 46table above, but the Group has not disclosed whether it has established a provision or 47contingent liability for any matter individually because it has concluded that such individual 48disclosure can be expected to prejudice seriously the outcome of the proceeding. 49On 25 September 2023, the Group agreed, without admitting or denying the SEC’s findings, 50to a cease-and-desist order, censure and USD 19 million civil money penalty to settle the 51SEC’s ESG related investigation of DWS Investment Management Americas, Inc. in relation to 52its US business. Separately, DWS Investment Management Americas, Inc. also reached a 53cease-and-desist order and USD 6 million civil money penalty to settle the SEC’s investigation 54of AFC-related services the company provided on behalf of certain DWS US (primarily retail) 55mutual funds, in respect of which the company is the investment adviser. 56On 31 May 2022, the Public Prosecutor's office in Frankfurt implemented a search of our 57Frankfurt offices after it had launched an investigation into ESG related topics. On 16 January 582024 and 1 February 2024, the Public Prosecutor’s office conducted further investigative 59measures. Each time the delivery of further documents was agreed. The Group is engaged in 60discussions with the Public Prosecutor's office to resolve the matter, although the outcome is 61yet to be concluded.62With respect to outstanding investigation and litigation matters, the Group cannot exclude 63that the outcomes may be adverse and could involve outflow of funds in excess of the 64amounts for which we have recognized provisions, but none of such proceedings is currently 65expected to have a significant impact on the Group’s financials. The Group has not stated the 66provision amounts to avoid influencing the outcome of the proceedings.67         68To our 69Shareholders70Summarised 71Management Report72Consolidated 73Financial Statements Compensation Report Corporate Govern-74ance Statement75Supplementary 76Information DWS 2023 Annual Report77 78Notes to the Consolidated Balance Sheet79108 16 – Provisions