According to CNN, as many as 170 police officers and tax investigators raided the bank.
According to a statement from the prosecutors, the raids were targeted at two Deutsche Bank employees, as well as others who have not yet been identified but are suspected to have helped clients to set up offshore companies in tax havens.
The investigators are also looking into the German Bank's failure in reporting the suspicious transactions.
The bank and the prosecutors divulged that the probe is in relation to the Panama Papers, a 2016 investigation into money laundering networks and shell companies set up by Panama-based law firm Mossack Fonseca.
The German Bank stated that it was cooperating with the police and will give out more details in due time.
It was also revealed by Frankfurt prosecutors that a subsidiary of Deutsche Bank in the British Virgin Islands had served more than 900 customers, doing €311 million (353 million USD) worth of business in 2016 alone.
Deutsche Bank (DB) shares witnessed a slump of more than 3 per cent on Thursday.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)