Finance

Prosecutors search Deutsche Bank HQ in money laundering investigation

  • Monetary regulator and federal police additionally concerned
  • Financial institution has been attempting to scrub up fame
  • Entails doable late reporting of suspicions – supply
  • Shares fall

FRANKFURT, April 29 (Reuters) – Prosecutors, federal police and different officers searched Deutsche Financial institution’s (DBKGn.DE) 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.

Underneath Chief Government Christian Stitching, Deutsche Financial institution has been attempting to restore its fame after a collection of embarrassing and expensive regulatory failings, together with one other raid over cash laundering in 2018.

In an announcement, Deutsche Financial institution stated the search was associated to suspicious transactions it had itself handed on to authorities and that it was cooperating absolutely.

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At concern is whether or not Deutsche Financial institution filed the so-called suspicious exercise report in a well timed method or not, an individual with data of the matter stated. Deutsche was performing as a correspondent financial institution within the transaction, the particular person stated.

Prosecutors stated they’d a search warrant however declined to elaborate. They stated representatives of monetary regulator BaFin had 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 had been down 0.4% in Frankfurt by 1500 GMT.

Issues with cash laundering have landed the financial institution in sizzling water up to now.

In 2020, Deutsche Financial institution was fined 13.5 million euros for late reporting of suspicious actions linked to potential cash laundering.

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

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

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

Deutsche has stated it has beefed up assets 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, however it warned that the battle in Ukraine might damage annual earnings.

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

That contrasts with the 2018 raid when about 170 police and different officers arrived in blue and gray marked autos.

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Reporting by Tom Sims, Frank Siebelt and Reuters TV; Enhancing by Thomas Escritt, Sabine Wollrab and David Clarke

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