Police spend second day searching Deutsche Bank headquarters

Deutsche Bank offices raided in Panama Papers probe

Police spend second day searching Deutsche Bank headquarters

A raid on Deutsche Bank's Frankfurt offices has entered its second day, German prosecutors said this morning, sending shares down by nearly three per cent.

Prosecutors said they were investigating allegations that Germany's biggest lender helped clients set up offshore companies in tax havens to "transfer money from criminal activities" to Deutsche Bank accounts.

The raid was a new blow to the financial institution that has been hammered by a string of scandals linked to its pre-2008 crisis attempts to compete with Wall Street investment banking giants.

The prosecutor's office has said the searches were prompted by information from several documents leaked from tax havens in recent years, including the 2016 Panama Papers.

The Panama Papers consist of millions of documents from the Panamanian law firm Mossack Fonseca that give information on shell corporations used to carry out fraud and tax evasion or, in some cases, to get around worldwide sanctions.

The bank would not comment to Reuters regarding the raid except to say it is "cooperating".

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.

In 2016 alone, more than 900 customers are alleged to have transferred some 311 million euros ($351 million) to one such company set up in the British Virgin Islands, she said.




He pointed a finger at the German financial regulator BaFin, which in January released a report finding no evidence of significant instances of money laundering at the banks identified in the Panama Papers.

Danske is under investigation for suspicious payments totalling 200 billion euros from 2007 onwards and a source with direct knowledge of the case has told Reuters Deutsche Bank helped to process the bulk of the payments.

A Deutsche Bank executive director has said the lender played only a secondary role as a so-called correspondent bank to Danske Bank, limiting what it needed to know about the people behind the transactions.

In September, however, BaFin ordered KPMG to conduct a third-party assessment at Deutsche Bank after criticizing the bank's money laundering and anti-terrorist financing procedures.

It's been a rough few weeks for Deutsche Bank.

Danske Bank, Denmark's largest, is under investigation now for laundering €200 billion of "non-resident money", much of it from Russian Federation, between 2007 and 2015, according to Bloomberg.

As much as $150 billion dollars of that money allegedly moved through Deutsche Bank at some point, according to Financial Times. 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.

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