Economy

Police Raid Deutsche Bank on Money Laundering Charges

Police Raid Deutsche Bank on Money Laundering Charges”

Frankfurt prosecutors said they were investigating allegations that Germany's biggest lender helped clients set up offshore companies in tax havens to "transfer money from criminal activities" to Deutsche Bank accounts.

The bank confirmed that police were searching its officers and said they were cooperating with the authorities.

The Panama Papers are a trove of documents from a law firm that handled shell companies for thousands of the rich and powerful around the world.

Prosecutors are probing whether Deutsche Bank may have assisted clients to set up "Offshore-Companies" in tax havens so that funds transferred to accounts at Deutsche Bank could skirt anti money laundering safeguards.

Six Deutsche Bank branches were searched Thursday in a money-laundering investigation linked to the 2016 Panama Papers data leak.

In 2017, Deutsche already had to pay a fine of nearly $630 million after an investigation by British and American authorities into laundering of money originating in Russian Federation.

It's been a tough few weeks for Deutsche after reports that its head of the Americas, Tom Patrick, would leave the bank by year-end alongside a raft of other senior management changes.

Deutsche shares fell 3% after news of the raid emerged. "As far as we are concerned, we have already provided the authorities with all the relevant information regarding Panama Papers".

In 2016 alone, over 900 customers were served by a Deutsche Bank subsidiary registered on the British Virgin Islands, generating a volume of 311 million euros, the prosecutors said.

Prosecutors have accused two of the bank's staff of helping to launder money obtained through criminal activity.

A Deutsche Bank executive director has said the lender played only a secondary role as a so-called correspondent bank to Danske Bank.

Paperwork and electronic documents were seized by officials during the raids on the bank's properties.

It also appointed an independent auditor to monitor Deutsche Bank's efforts over three years.

In recent years, Deutsche Bank has been in the news not only for its prominence in the Panama Papers, but also for its ties to President Trump, in a tumultuous relationship that goes back some 20 years.

In April, John Cryan was replaced by Christian Sewing as CEO.

Deutsche Bank has been under pressure after annual losses, and it agreed to pay a $7.2 billion settlement with US authorities previous year over its sale of toxic mortgage securities in the run-up to the 2008 financial crisis.



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