WEATHER AUTHORITY : Heat Advisory View Alerts
STREAMING NOW: Watch Now

Deutsche Bank raided in money laundering probe

Deutsche Bank's head office and other locations in Frankfurt were raided by 170 police officers and tax investigators as part of a money laundering probe related to the Panama Papers.

Posted: Nov 30, 2018 1:53 AM
Updated: Nov 30, 2018 1:53 AM

Deutsche Bank's head office and other locations in Frankfurt were raided by 170 police officers and tax investigators on Thursday as part of a money laundering probe.

Prosecutors said the raids targeted two Deutsche Bank employees, and others who have not yet been identified.

The German bank is suspected of helping clients to set up offshore companies in tax havens, prosecutors said in a statement. Investigators are also looking at whether Deutsche Bank failed to report suspicious transactions.

Both the lender and prosecutors said the probe is related to the Panama Papers, a 2016 investigation into money laundering networks and shell companies set up by Panama-based law firm Mossack Fonseca.

Frankfurt prosecutors said that a subsidiary of Deutsche Bank in the British Virgin Islands had served more than 900 customers, doing €311 million ($353 million) worth of business in 2016 alone.

Deutsche Bank said it was cooperating with authorities and would release more details in due course.

"As far as we are concerned, we have already provided the authorities with all the relevant information regarding [the] Panama Papers," it said in a statement. "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."

Germany's biggest bank employs roughly 95,000 workers and has assets worth €1.4 trillion ($1.6 trillion). It's one of 29 lenders designated by the Bank for International Settlements as playing a significant role in the global financial system.

The investigation is yet another headache for Deutsche Bank, which has struggled in recent years to turn a profit amid questions about its business strategy and direction, and the heavy financial burden of past misconduct.

The lender struck a $7.2 billion deal with the US government in January 2017 to settle claims that it packaged and sold toxic mortgages. It was fined $630 million the same month over a Russian money laundering scheme.

In September, Deutsche Bank was ordered by German regulators to tighten its controls to prevent money laundering and terrorist financing.

Shares in Deutsche Bank (DB) slumped more than 3% on Thursday. The stock has tumbled 47% so far this year.

Christian Sewing, a retail banking veteran who took over as CEO in April, has tried to accelerate an overhaul of the bank, which has already closed hundreds of branches, cut thousands of jobs and slashed costs.

A European problem

Other European lenders have also come under scrutiny for potential money laundering. HSBC (HBCYF) and ING (ING) have both settled money-laundering allegations in recent years.

Danske Bank (DNKEY), the largest bank in Denmark, said in September that an internal investigation had uncovered a large number of suspicious accounts and transactions at its branch in Estonia.

Jimmy Gurulé, professor at Notre Dame Law School and former US Treasury official, said that stronger deterrents are needed.

"Even in the most egregious cases, banks are often only required to pay a monetary penalty for engaging in criminal activity, which is merely the cost of doing business," he said.

Mississippi Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 37542

Reported Deaths: 1272
CountyConfirmedDeaths
Hinds304154
DeSoto200920
Madison150839
Jones123149
Harrison118316
Rankin113719
Neshoba104577
Forrest104343
Lauderdale97281
Scott83115
Jackson80419
Washington75313
Copiah67516
Leake63520
Lee63022
Grenada6259
Oktibbeha62328
Warren60021
Holmes59841
Lamar5847
Wayne56819
Yazoo5667
Lowndes54917
Leflore53956
Lincoln53835
Pike51120
Lafayette5094
Sunflower5058
Panola4616
Monroe46036
Simpson4533
Covington4505
Bolivar41618
Tate39513
Attala38624
Newton37710
Adams36720
Pontotoc3636
Marion34912
Claiborne31511
Pearl River30832
Chickasaw30219
Winston30211
Marshall2973
Jasper2826
Noxubee2799
Walthall2748
Clay26211
Smith25612
Union25612
Coahoma2356
Clarke22825
Lawrence2162
Yalobusha2089
Tallahatchie1974
Montgomery1863
Kemper18414
Carroll18311
Humphreys17410
Calhoun1705
Hancock15213
Itawamba1478
Tippah14711
Jefferson1373
Webster13511
Prentiss1274
Tunica1263
George1253
Jefferson Davis1254
Greene11610
Alcorn1112
Amite1113
Tishomingo1091
Quitman1011
Wilkinson1019
Perry914
Stone772
Choctaw764
Franklin572
Sharkey480
Benton470
Issaquena111
Unassigned00

Alabama Coronavirus Cases

Confirmed Cases: 56441

Reported Deaths: 1136
CountyConfirmedDeaths
Jefferson7012170
Mobile5061140
Montgomery4599112
Tuscaloosa274353
Madison25359
Marshall205012
Shelby176425
Lee164737
Morgan13975
Baldwin134111
Walker111332
Elmore107622
Etowah106914
Dallas10189
DeKalb10017
Franklin95016
Unassigned77728
Autauga71515
Russell7130
Chambers68530
Cullman6686
Limestone6653
Butler65529
Houston6417
Tallapoosa63069
Lauderdale6006
St. Clair5983
Calhoun5545
Colbert5286
Escambia5128
Lowndes49222
Pike4805
Jackson4422
Coffee4364
Covington43512
Talladega4177
Dale4061
Barbour4022
Bullock37810
Hale36323
Marengo36111
Chilton3452
Blount3311
Clarke3236
Wilcox3158
Marion30914
Winston3095
Sumter29713
Pickens2786
Randolph2759
Monroe2683
Perry2552
Conecuh2388
Bibb2271
Macon2229
Choctaw22012
Greene2009
Henry1573
Washington1529
Lawrence1460
Crenshaw1343
Cherokee1317
Geneva1010
Fayette901
Clay892
Lamar891
Coosa671
Cleburne481
Out of AL00
Tupelo
Few Clouds
93° wxIcon
Hi: 93° Lo: 74°
Feels Like: 96°
Columbus
Clear
91° wxIcon
Hi: 93° Lo: 73°
Feels Like: 100°
Oxford
Scattered Clouds
88° wxIcon
Hi: 93° Lo: 73°
Feels Like: 93°
Starkville
Clear
88° wxIcon
Hi: 91° Lo: 71°
Feels Like: 96°
WTVA Radar
WTVA Temperatures
WTVA Severe Weather