Police raided six Deutsche Bank offices in and around Frankfurt on Thursday over money laundering allegations linked to the “Panama Papers,” the public prosecutor’s office in Germany’s financial capital said.
Investigators are looking into the activities of two unnamed Deutsche Bank employees alleged to have helped clients set up offshore firms to launder money, the prosecutor’s office said.
Around 170 police officers, prosecutors and tax inspectors searched the offices where written and electronic business documents were seized.
“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,” Deutsche Bank said, adding it believed it had already provided all the relevant information related to the “Panama Papers.”
The news comes as Deutsche Bank tries to repair its tattered reputation after three years of losses and a drumbeat of financial and regulatory scandals.
WATCH BELOW: Why the 2016 Panama Papers revelations matter to Canadians
Christian Sewing was appointed as chief executive in April to help the bank to rebuild. He trimmed U.S. operations and reshuffled the management board but revenue has continued to slip.
Deutsche Bank shares were down more than 3 percent by 1220 GMT and have lost almost half their value this year.
Offshore links
Under scrutiny
Weaknesses in Deutsche Bank’s controls that aim to prevent money laundering have caught the attention of regulators on both sides of the Atlantic. The bank has publicly said that it agreed it needed to improve its processes to properly identify clients.In September, Germany’s financial watchdog – BaFin – ordered Deutsche Bank to do more to prevent money laundering and “terrorist financing,” and appointed KPMG as third party to assess progress.In August, Reuters reported that Deutsche Bank had uncovered further shortcomings in its ability to fully identify clients and the source of their wealth.Last year, Deutsche Bank was fined nearly $700 million for allowing money laundering through artificial trades between Moscow, London and New York. An investigation by the U.S. Department of Justice is still ongoing.Deutsche Bank has been under pressure after annual losses, and it agreed to pay a $7.2 billion settlement with U.S. authorities last year over its sale of toxic mortgage securities in the run-up to the 2008 financial crisis.Trending
-
UBC president addresses Gaza encampment demands1321 Read
-
Missing Australian, American surfers found dead in well with gunshot wounds1124 Read
-
Delivery issue: Why Canada Post ‘must change’ to avoid collapse737 Read
-
Drake’s security guard shot outside of rapper’s Toronto home529 Read
-
All London Drugs stores in Western Canada reopen following cyberattack521 Read
-
Met Gala 2024: The most daring, dazzling and outrageous red carpet looks495 Read
You are viewing an Accelerated Mobile Webpage.
View Original Article