Police Raid Deutsche Bank on Money Laundering Charges

A money-laundering probe stemming from the "Panama Papers" has led police to Deutsche Bank.

DW reports German Police Raid Deutsche Bank Over Suspected Money Laundering.

Federal police on Thursday raided the Frankfurt offices of Deutsche Bank. The Frankfurt prosecutor's office said the raids stemmed from an investigation into suspected money laundering at the German bank.

About 170 law enforcement agents took part in the operation. The investigation revolves around multiple Deutsche Bank employees, including two believed to still be working at the financial institution. 

According to prosecutors, Deutsche Bank is suspected of helping some 900 customers setup offshore shell companies in tax havens to "transfer money from criminal activities." They said some €311 million ($354 million) is believed to have been laundered, citing information gleaned from the so-called "Panama Papers."

The "Panama Papers" data leak comprised some 11.5 million documents and was leaked to German newspaper Süddeutsche Zeitung by an anonymous source in 2015. At least 28 German entities were identified in the leak, according to reports at the time, including Deutsche Bank.

In the past, Deutsche Bank has acknowledged that its anti-money laundering efforts have fallen short of financial rules. In August, it confirmed that even after it was fined for helping Russian clients wash some $10 billion (€8.8 billion), its mechanisms to stop such criminal activity were still inefficient.

Deutsche Bank Monthly Chart

Fines vs Market Cap

Its derivatives book is also a suspicious mess and it flunked a Fed stress test.

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Mike "Mish" Shedlock

Comments
No. 1-8
Six000mileyear
Six000mileyear

The story the stock chart tells is: management doesn't care about the stock price when a great deal of money has been made laundering money.

Sechel
Sechel

Deutsche bank, Trump's main bank

hmk
hmk

Wasn't this legal at some point and weren't Swiss banks the ones doing it in the past untill Uncle Sams jackboot put a stop to it? You can kill someone in the US or Europe and get away with a slap on the hands but its a capital offense if you deprive the govt pigs of their tax money. Maybe if govts would just let these guys pay taxes on their ill gotten gains without asking any questions it might make things a lot simpler as well as bring in some tax revenue. The money would stay in the country of origin or if it was moved overseas the reciepiant country banks wouldn't have to go through all the regulatory garbage imposed upon them to stop the "laundering".

KidHorn
KidHorn

Are there any banks that aren't crime syndicates?

Tengen
Tengen

Is it too much to hope this could ever happen here in the US, say to Goldman?

Then again, Wells Fargo had 5300 employees involved in scamming customers with fake accounts but wiggled out with the argument that all those employees acted independently and nobody knew. If you can get away with that, I'm not sure what warrants a raid here.

As for money laundering, we've done that with Latin American drug money for a long time and more recently with Afghan heroin money. Nobody seems to care, though.

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