Deutsche Bank offices raided in Panama Papers money laundering probe

Deutsche Bank offices raided in Panama Papers money laundering probe

Deutsche Bank offices raided in Panama Papers money laundering probe

The investigation was launched after evaluation of the explosive Panama Papers tax haven revelations and the previous Offshore Leaks report of offshore bank accounts, according to a government spokesman, Nadja Niesen.

British banking authorities said at least 29 Deutsche Bank employees were involved in the scam, while U.S. regulators ordered the bank to fire seven employees, including directors and vice-presidents.

Chief executive Christian Sewing, who took over in April, has been shedding jobs and making other cost cuts in an attempt to revive the bank's performance.

Deutsche Bank confirmed the search, adding that it is fully cooperating with the authorities.

The claims had first surfaced in the "Panama Papers" investigation, published by an global consortium of journalists in 2016. He trimmed US operations and reshuffled the management board but revenue has continued to slip.

Records from the Panamanian law firm Mossack Fonseca were the the basis of the Panama Papers investigation and included more than 10m documents.

More than 900 customers were served by a Deutsche Bank subsidiary registered on the British Virgin Islands, generating a volume of 311 million euros, it is alleged.

Several banks, including the Swedish lenders Nordea and Handelsbanken have already been fined by financial regulators for violating money laundering rules as a result of the Panama Papers.

According to United States 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.

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.

A Deutsche Bank executive director has said the lender played only a secondary role as a so-called correspondent bank to Danske Bank.

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

USA and British regulators fined the bank $630 million a year ago for allowing wealthy Russians to launder $10 billion in cash between 2012 and 2015.

It also appointed an independent auditor to monitor Deutsche Bank's efforts over three years.

The bank has already recorded annual loses after agreeing to pay a $7.2 billion settlement with U.S. authorities after it sold toxic mortgage agreements prior to the 2008 financial crash.

The bank signed a $7.2 billion settlement with the US Department of Justice in 2017, after being accused of having sold investors bad mortgage-backed securities between 2005 and 2007.

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