Deutsche Bank offices raided in connection with Panama Papers

Deutsche Bank offices raided in connection with Panama Papers

Deutsche Bank offices raided in connection with Panama Papers

A police raid of Deutsche Bank is continuing this morning for a second day over money laundering allegations linked to the "Panama Papers", a spokeswoman for the Frankfurt prosecutor's office said.

In 2017, Deutsche Bank was fined a total of $630 million (€553.5 million) by U.S. and United Kingdom financial authorities over accusations of having laundered money out of Russian Federation.

Police and the public prosecutor's office raided Deutsche Bank's offices in Germany, including the head office at Taunusanlage in Frankfurt, the bank said.

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

Prosecutors have reportedly said roughly 311 million euros ($354 million) is believed to have been laundered, citing information from the so-called Panama Papers.

According to the Guardian, several banks including the Swedish lenders Nordea and Handelsbanken had already been fined for violating money laundering rules as a result of the Panama Papers.

Bank employees are suspected of having helped clients to establish the firm in tax oases and conducted banking transactions with the money obtained by illegal means, not stating the authorities on suspicion of money laundering. Numerous police vehicles could be seen parked up outside the giant investment bank's entrances as written and electronic documents were seized from the premises.

They also accused the bank's employees of allegedly neglecting their duties of reporting suspicious activity of clients involved in tax evasion schemes. Deutsche is the biggest bank in Germany and the 17th biggest in the world by total assets.

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Deutsche Bank shares were down more than 2 percent by 1409 GMT and have lost nearly half their value this year.

Weaknesses in Deutsche Bank's controls that aim to prevent money laundering have caught the attention of regulators on both sides of the Atlantic.

Deutsche Bank shares have lost around half of their value this year, after the bank endured three years of losses and a series of financial and regulatory scandals. We will be issuing further details in due course.

Deutsche Bank has also come under scrutiny over its activities as a correspondent for scandal-plagued Danske Bank, Denmark's largest lender. "The investigation relates to the Panama Papers".

Citing people familiar with the matter, Bloomberg News had reported that Deutsche was the unnamed bank a Danske whistleblower said had handled nearly $150 billion of suspect transactions originating in the Danish firm's Estonian branch.

An investigation by the U.S. Department of Justice is still ongoing.

The bank has publicly said that it agreed it needed to improve its processes to properly identify clients.

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