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Deutsche Bank Offices Are Raided In Money Laundering Probe

Deutsche Bank Offices Are Raided In Money Laundering Probe

Around 170 police officers, prosecutors and tax inspectors took part in the searches which saw written and electronic documents seized, the Frankfurt prosecutor's office said.

The Panama Papers refer to a collection of documents leaked in 2016 from Mossack Fonseca, a Panama-based law firm that created shell companies to facilitate tax avoidance.

The investigation is separate from another money laundering scandal surrounding Danish lender Danske Bank, in which Deutsche Bank has a role.

They also said Deutsche Bank employees are alleged to have breached their duties by neglecting to report money laundering suspicions about clients and offshore companies involved in tax evasion schemes.

"We are cooperating fully with the authorities".

There was no indication that Thursday's raid was linked to that scandal, though Deutsche Bank says that it has since stopped providing dollar transactions in some countries, including Latvia.

Deutsche shares fell 3% after news of the raid emerged.




In 2016 alone, more than 900 customers are alleged to have transferred some 311m euros to one such company set up in the British Virgin Islands, she said.

It is believed the probe involves the so-called Panama Papers, leaked documents pertaining to over 200,000 offshore dealings.

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

The raids are the latest embarrassment for embattled Deutsche Bank, which has repeatedly been rapped by regulators for lax money laundering controls. FWIW: Deutsche has been rocked by problems and was the only major global bank to do business with Trump in recent years.

Last year, Deutsche Bank was fined almost $700million for allowing money laundering through artificial trades between Moscow, London and NY.

Some of the money reportedly went through Deutsche Bank and ended up in major capitals like London, according to The Organized Crime and Corruption Reporting Project. Sylvie Matherat, a management board member who serves as the bank's chief regulatory officer, and Tom Patrick, who runs operations in the Americas, are among executives who might ultimately leave, people familiar with the matter said this week.

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