Deutsche Bank’s Frankfurt HQ searched in Panama Papers probe

Deutsche Bank’s Frankfurt HQ searched in Panama Papers probe

The Frankfurt prosecutor's office said the raids stemmed from an investigation into suspected money laundering at the German bank.

Federal police on Thursday raided the Frankfurt offices of Deutsche Bank.

The prosecutors said they are looking at 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.

In a separate statement, the bank said: "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".

In 2017, Deutsche Bank was fined $630m (£504m) by USA and United Kingdom regulators in connection with a Russian money laundering plan.

The Panama Papers are a set of millions of documents leaked in 2015 by Panamanian law firm Mossack Fonseca and Co linking offshore accounts to alleged fraud and tax evasion.

"The investigation has to do with the Panama Papers case", the bank said.

Markus Meinzer, director of the Financial Secrecy Tax Justice Network, said the "raid is long overdue because the Panama Papers have amply illustrated how offshore law firms cooperated with banks in setting up structures with one single aim: to help clients hide their true identities".

The Panama Papers revelations in 2016 spotlighted the flow of illicit money across the globe hidden in offshore holding companies.

The bank tweeted: "It is true that the police is now conducting an investigation at a number of our offices in Germany".

Deutsche Bank shares fell as much as 4.7 per cent on Xetra.

Deutsche Bank was among hundreds of financial institutions whose names cropped up in the media reports about the Panama Papers. At least 28 German entities were identified in the leak, according to reports at the time, including Deutsche Bank.

What do you think about Deutsche Bank's new scandal?

The Frankfurt prosecutors said their probe was focusing on two Deutsche Bank employees aged 50 and 46, as well as several unnamed senior staff members. Regulators fined it $630 million in 2017 over an illegal scheme with Russian Federation.

"Just when you thought Deutsche Bank had left its legal troubles behind it, there's more", said Markus Riesselmann, an analyst at Independent Research who recommends investors sell Deutsche Bank shares.

Weaknesses in Deutsche Bank's controls that aim to prevent money laundering have caught the attention of regulators on both sides of the Atlantic. This year, the bank saw its credit rating downgraded, its CEO ousted and its stock price hit a record low.

Deutsche Bank is in the throes of a major restructuring plan, with 7,000 jobs to go by the end of 2019.

Related Articles

  • Apple in a court battle over App Store

    Apple in a court battle over App Store

    Apple is officially off to the Supreme Court today to fight an antitrust case that claims the App Store operates as a monopoly . The states are led by Texas Attorney General Ken Paxton, a Republican, and Iowa Attorney General Tom Miller, a Democrat.
    Gentry says winning all that matters to Davis, Pelicans

    Gentry says winning all that matters to Davis, Pelicans

    That gives Stevens plenty of time to think about his starting five, which he says will be ever-evolving throughout the season. This season, the five-time All-Star is averaging 27 points with 12.8 rebounds and 4.9 assists per game.
    GOP Senator Who Made ‘Hanging’ Remark Attended ‘Segregated’ Academy

    GOP Senator Who Made ‘Hanging’ Remark Attended ‘Segregated’ Academy

    Although she later apologized for her remark , she accused her opponents of twisting her words for political gain. President Trump announced that he will be traveling to MS on Monday to endorse Republican Cindy Hyde-Smith.
  • Warriors' injured star Steph Curry to return in Detroit

    Warriors' injured star Steph Curry to return in Detroit

    Golden State coach Steve Kerr leaped to his feet in need of a timeout to reset his Warriors just five minutes into the game. Instead of shying away from the moment, Kawhi relished in it, and that can take this Raptors team to new heights.
    Trump's ex-lawyer Michael Cohen pleads guilty to lying about Russian Federation  deal

    Trump's ex-lawyer Michael Cohen pleads guilty to lying about Russian Federation deal

    The president also said he had not explicitly offered a pardon to Manafort , but: "I'm not taking anything off the table". Thursday's plea was regarding Cohen's false testimony to Congress about Trump's efforts to build a hotel in Moscow.
    Storm Diana to bring gale-force winds to Preston

    Storm Diana to bring gale-force winds to Preston

    Severe rainfall will affect other parts of the United Kingdom , with the storm expected to bring between 60mm and 80mm of rain. The Met Office has this morning issued a severe weather warning for strong winds for Sheffield and South Yorkshire.
  • Trump says close to doing something with China on trade

    Trump says close to doing something with China on trade

    Rather, the goal is "that there would be an indication, a kind of way ahead that the advisors could then pursue", Bolton said. Other leaders may be warier and will likely try - as diplomatically as possible - to avoid being photographed with MBS.
    7 nooses found by Mississippi Capitol before Senate runoff

    7 nooses found by Mississippi Capitol before Senate runoff

    Still, White House officials have long expressed unease about Hyde Smith and worry that she wasn't ready for prime time. They say surveys have consistently shown her with a lead ranging from the mid-single digits to the low double digits.
    Kartarpur corridor: Pakistan receives ministers, pilgrims

    Kartarpur corridor: Pakistan receives ministers, pilgrims

    He said the construction of the corridor will stand completed before the next birth anniversary of Baba Guru Nanak in November. Imran Khan said that there have been mistakes on both sides, but it would not be wise to keep playing this blame-game.
  • Trumps Light National Christmas Tree South of White House

    Trumps Light National Christmas Tree South of White House

    In real life, they look even more attractive . "I hope everybody will come over and visit it", she said. Strongly resembling this year's red tree motif, last year's featured an array of white trees.
    Pelosi wins Democratic nomination for leader as opposition crumbles

    Pelosi wins Democratic nomination for leader as opposition crumbles

    Joe Cunningham of SC and Abigail Spanberger of Virginia are among those who said they'd vote against Pelosi on the House floor. Seth Moulton and Kathleen Rice, who are refusing to back her on the grounds of facilitating new leadership.
    Kremlin still planning on Trump-Putin meeting at G-20

    Kremlin still planning on Trump-Putin meeting at G-20

    Videos appeared online showing a Russian coast guard vessel ramming the Ukrainian navy tugboat in the Kerch Strait. Erdoğan and Trump also agreed during the phone call for a meeting at the upcoming G20 meeting in Argentina.