The logo of Deutsche Bank is seen at its headquarters ahead of the bank's annual general meeting in Frankfurt, Germany May 18, 2017. REUTERS/Ralph Orlowski

FRANKFURT (Reuters) - Germany’s financial markets watchdog is requiring Deutsche Bank to re-examine the files of about 20,000 risky clients by the end of June as part of its “know your customer” process, a person familiar with the matter said on Wednesday.

Deutsche Bank has come under fire for weaknesses in its procedures in identifying clients to prevent money laundering and the financing of extremists.

The June deadline was imposed when watchdog BaFin announced in September that it had ordered the lender to do more to prevent money laundering, without giving details. It said it had appointed a third party, KPMG, to assess progress.

Handelsblatt first reported the requirement earlier on Wednesday.

Deutsche Bank declined to comment.

The customers will be re-evaluated under the terms of a new money laundering directive. The bank will have another year or more to examine the status of less risky customers.