Deutsche Bank is facing a barrage of criticism from US regulators over what they say are weak reporting systems and risk controls, including under a confidential pact that formally orders the bank to make far-reaching improvements, according to people familiar with the agreement.

Through a corrective action called a "memorandum of understanding," the Federal Reserve Bank of New York and New York's Department of Financial Services are demanding that Deutsche Bank overhaul its technology and compliance procedures, and fix what the regulators describe as serious risk-management deficiencies, according to people familiar with the accord.