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.

Passion to Perform!

Mike "Mish" Shedlock

Comments
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caradoc-again
caradoc-again

About time. The whole EU bank set-up stinks and dig deep enough you'll find bodies all over the place.

Even if they performed these activities DB still can't make money & stress tests have to be bent to help them pass. It's all a sick joke.

Oh, and guess what, employees (probably lower level) will be on the hook but no one goes after those supposedly overseeing operations. Tell me management didn't know what was going on.

Murdo McSponge
Murdo McSponge

What is to be expected from a German outfit like DB? Germans like to portray themselves as "whiter than white" (or is that an unacceptable term in these pc days?) when in fact they are as crooked as everyone else; probably more so. Cars, money laundering, fixing the Euro to their benefit and putting hundreds of thousands - a whole generation - of young Italians, Greeks, Portugese, Spaniards out of work. No wonder the Brits voted for Brexit.

Sechel
Sechel

I'm wondering if this has Trump repercussions though I'll readily admit its way too easy to read into these things

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.

KidHorn
KidHorn

Are there any banks that aren't crime syndicates?