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Thursday, May 26, 2022

Prosecutors search Deutsche Bank HQ in cash laundering investigation

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A brand stands on show above the headquarters of Deutsche Bank AG on the Aurora Business Park in Moscow, Russia.

Andrey Rudakov | Bloomberg | Getty Images

Prosecutors, federal police and different officers searched Deutsche Bank’s headquarters in Frankfurt on Friday in a transfer Germany’s largest lender stated was linked to suspicions of cash laundering it had reported to the authorities.

Under Chief Executive Christian Sewing, Deutsche Bank has been making an attempt to restore its status after a collection of embarrassing and dear regulatory failings.

In a press release, Deutsche Bank stated the search concerned suspicious transactions it had itself handed on to authorities and that it was cooperating absolutely.

Prosecutors stated they’d a search warrant however declined to elaborate. They stated representatives of monetary regulator BaFin have been additionally collaborating.

BaFin and federal police declined to remark.

The financial institution’s shares fell greater than 3% following information of the search and have been down 2.7% in early afternoon in Frankfurt.

Problems with cash laundering have landed the financial institution in scorching water prior to now.

The U.S. Department of Justice has been investigating it for years, for instance, over trades that authorities stated have been used to launder $10 billion out of Russia, which has led to the German financial institution being fined almost $700 million.

In 2018, BaFin took the bizarre step of putting in KPMG as a particular monitor at Deutsche to supervise progress on cash laundering controls.

Last yr, BaFin ordered Deutsche to enact additional safeguards to forestall cash laundering and the regulator widened the auditor’s mandate.

Deutsche has stated it has beefed up sources to fight cash laundering.

This week, the financial institution posted a better-than-expected 17% rise in first-quarter revenue as funding banking income climbed, but it surely warned that the battle in Ukraine may harm annual earnings.

A Reuters witness stated that there was no signal of authorities outdoors the financial institution’s headquarters on Friday.

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