STREAMING NOW: Watch Now

Deutsche Bank raided in money laundering probe

Deutsche Bank's head office and other locations in Frankfurt were raided by 170 police officers and tax investigators as part of a money laundering probe related to the Panama Papers.

Posted: Nov 29, 2018 11:44 PM
Updated: Nov 29, 2018 11:53 PM

Deutsche Bank's head office and other locations in Frankfurt were raided by 170 police officers and tax investigators on Thursday as part of a money laundering probe.

Prosecutors said the raids targeted two Deutsche Bank employees, and others who have not yet been identified.

The German bank is suspected of helping clients to set up offshore companies in tax havens, prosecutors said in a statement. Investigators are also looking at whether Deutsche Bank failed to report suspicious transactions.

Both the lender and prosecutors said the probe is related to the Panama Papers, a 2016 investigation into money laundering networks and shell companies set up by Panama-based law firm Mossack Fonseca.

Frankfurt prosecutors said that a subsidiary of Deutsche Bank in the British Virgin Islands had served more than 900 customers, doing €311 million ($353 million) worth of business in 2016 alone.

Deutsche Bank said it was cooperating with authorities and would release more details in due course.

"As far as we are concerned, we have already provided the authorities with all the relevant information regarding [the] Panama Papers," it said in a statement. "Of course, we will cooperate closely with the public prosecutor's office in Frankfurt, as it is in our interest as well to clarify the facts."

Germany's biggest bank employs roughly 95,000 workers and has assets worth €1.4 trillion ($1.6 trillion). It's one of 29 lenders designated by the Bank for International Settlements as playing a significant role in the global financial system.

The investigation is yet another headache for Deutsche Bank, which has struggled in recent years to turn a profit amid questions about its business strategy and direction, and the heavy financial burden of past misconduct.

The lender struck a $7.2 billion deal with the US government in January 2017 to settle claims that it packaged and sold toxic mortgages. It was fined $630 million the same month over a Russian money laundering scheme.

In September, Deutsche Bank was ordered by German regulators to tighten its controls to prevent money laundering and terrorist financing.

Shares in Deutsche Bank (DB) slumped more than 3% on Thursday. The stock has tumbled 47% so far this year.

Christian Sewing, a retail banking veteran who took over as CEO in April, has tried to accelerate an overhaul of the bank, which has already closed hundreds of branches, cut thousands of jobs and slashed costs.

A European problem

Other European lenders have also come under scrutiny for potential money laundering. HSBC (HBCYF) and ING (ING) have both settled money-laundering allegations in recent years.

Danske Bank (DNKEY), the largest bank in Denmark, said in September that an internal investigation had uncovered a large number of suspicious accounts and transactions at its branch in Estonia.

Jimmy Gurulé, professor at Notre Dame Law School and former US Treasury official, said that stronger deterrents are needed.

"Even in the most egregious cases, banks are often only required to pay a monetary penalty for engaging in criminal activity, which is merely the cost of doing business," he said.

Oregon Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 19097

Reported Deaths: 326
CountyConfirmedDeaths
Multnomah445092
Washington283023
Marion266767
Umatilla199624
Clackamas140136
Malheur67310
Deschutes5378
Lane5183
Lincoln3919
Union3882
Jackson3851
Yamhill35911
Jefferson3103
Morrow3041
Polk28812
Linn24810
Klamath1941
Hood River1690
Wasco1613
Benton1556
Douglas1321
Josephine1051
Coos840
Clatsop800
Columbia780
Crook431
Lake320
Baker300
Tillamook280
Wallowa191
Curry140
Sherman140
Harney80
Gilliam40
Grant20
Unassigned00
Wheeler00

California Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 512175

Reported Deaths: 9396
CountyConfirmedDeaths
Los Angeles1921774693
Orange37391651
Riverside37011695
San Bernardino32980417
San Diego29883565
Kern20545144
Fresno15083138
Alameda11524189
San Joaquin11483168
Santa Clara10626191
Sacramento10067142
Tulare9454178
Imperial9409220
Stanislaus9061110
Contra Costa7966125
Ventura734476
San Francisco681161
Santa Barbara616760
San Mateo5544119
Marin499470
Monterey482230
Kings438056
Merced428550
Solano361137
Sonoma305537
Madera194330
Placer192516
San Luis Obispo178315
Yolo154442
Santa Cruz11524
Butte9417
Napa8888
Sutter7866
San Benito6434
El Dorado6371
Lassen6310
Yuba4854
Shasta3699
Glenn3251
Colusa3234
Mendocino3179
Nevada2991
Tehama2341
Humboldt2334
Lake1951
Mono1451
Tuolumne1412
Amador1260
Calaveras1251
Del Norte880
Siskiyou730
Mariposa562
Inyo511
Plumas330
Trinity50
Alpine20
Modoc20
Sierra20
Unassigned00
Medford
Clear
71° wxIcon
Hi: 94° Lo: 61°
Feels Like: 71°
Brookings
Overcast
57° wxIcon
Hi: 68° Lo: 54°
Feels Like: 57°
Crater Lake
Clear
64° wxIcon
Hi: 83° Lo: 52°
Feels Like: 64°
Grants Pass
Broken Clouds
72° wxIcon
Hi: 92° Lo: 61°
Feels Like: 72°
Klamath Falls
Clear
64° wxIcon
Hi: 86° Lo: 50°
Feels Like: 64°
Thunderstorm chances ahead
KDRV Radar
KDRV Fire Danger
KDRV Weather Cam

Community Events