The Deutsche Bank money laundering mess is going to be a mess for President Trump as well. He has a longstanding relationship with the bank that House Democrats are going to be able to probe come January. My column today: https://t.co/q4Ln8tNr6u
— Tim O'Brien (@TimOBrien) November 29, 2018
Germany’s public prosecutor alleged both staff members have helped customers launder money from criminal activities.
Police cars were seen outside the tower blocks that house the headquarters of Germany’s largest bank.
Five additional Deutsche offices in town were hunted in an operation involving roughly 170 officials and police.
Prosecutors are looking into if Deutsche Bank staff helped customers set up offshore accounts to”transfer money from criminal actions”.
The analysis, which began in August, concentrates on activities between 2013 and also the beginning of 2018.
In 2016 alone, more than 900 customers were served with a Deutsche Bank subsidiary enrolled in the British Virgin Islands, making a volume of $311m, the prosecutors allege.
The investigation was sparked by revelations in the 2016″Panama Papers” – an enormous quantity of information leaked by a Panamanian law firm called Mossack Fonseca.
What are the Panama Papers?
Other banks are fined as a result of information contained in this Panama Papers.
The bank confirmed that authorities had raided several locations in Germany and that it was co-operating fully with the probe.
Deutsche has been connected with another massive money laundering scandal in Denmark’s Danske Bank.
Before this month, Deutsche verified that it was included in processing payments for the subprime lender in Estonia.
An internal investigation by Danske found that about $200bn (#177bn) of obligations were funnelled through its Estonian branch.
The subprime lender said many of these payments were suspicious.
Deutsche said it had terminated its connection with Danske in 2015 after”identifying suspicious activity”.
Fines and sanctions
In September, Germany’s financial regulator ordered the lender to take additional actions to stop money laundering and terrorism funding.
It also appointed an independent auditor to track Deutsche Bank’s efforts over three years.
Under the strategy, customers illegally transferred $10bn from Russia via stocks bought and sold throughout the bank Moscow, London and New York offices.
The trouble with authorities comes at a time when Deutsche continued to face problems with its enterprise.
Pre-tax earnings for the three months to September fell 45 percent to $506m compared with the same period this past year.
Chief executive Christian Sewing, who took over in April, has been shedding jobs and producing other cost cuts in an attempt to revive the bank’s performance.
But, investors have yet to have now been won over by his efforts and Deutsche shares have halved this year.