Deutsche Bank Offices Are Raided In Money Laundering Probe

Deutsche Bank Offices Are Raided In Money Laundering Probe

Speaking about the latest investigation, a Deutsche Bank spokesman 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'.

According to U.S. and British regulators, Deutsche Bank's anti-money laundering control mechanisms failed to spot sham trades with a value of up to $10 billion, not knowing who the customers involved in the trades were and where their money came from. Police cars were parked outside the headquarters of the bank, Germany's biggest lender.

Records from the Panamanian law firm Mossack Fonseca were the the basis of the Panama Papers investigation and included more than 10m documents. German prosecutors allege that two staff members at the bank helped clients launder money from criminal activities using offshore accounts in the British Virgin Islands.

Deutsche Bank was today raided as part of investigations into money laundering associated with the Panama Papers.

Subsequent investigations exposed evidence Deutsche Bank helped clients set up off-shore accounts, prosecutors said.

TRT World's Ira Spitzer has more details from Berlin. The officials said the raid wasn't related to its role as a correspondent bank for money laundering at Denmark's Danske Bank.

In August, Deutsche Bank uncovered shortcomings in its screening process to fully identify clients and the source of their wealth, according to Reuters.

Trump studying new auto tariffs after GM restructuring
A ceasefire, analysts say, would at least delay the risk of a further escalation in the trade war while talks proceed. Hawks in his administration have also been eager to see broader changes in Chinese industrial and technology policy.

The timing of the raid inflicts more pain on Deutsche Bank after a series of setbacks and repeated failures in keeping misconduct in check have pushed the shares to all-time lows.

Scandinavian lenders Nordea and Handelsbanken have already been fined by regulators for violating money laundering rules.

Scrutiny surrounding Deutsche Bank, one of New York's top real estate lenders, has just intensified.

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.

Several other institutions besides Deutsche Bank have been fined by authorities in the USA and Europe for not properly checking up on the beneficial owners of shell companies that send money through their accounts.

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

Analysts say that because these transactions can be lucrative, banks have few incentives to do more than the minimum required by law to check on the identity of a bank.

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