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Deutsche Bank premises raided in Germany amid money laundering probe

IANS  |  Berlin 

premises in and around were raided by the police and tax investigators on Thursday in relation to suspicions that the helped clients set up offshore entities in tax havens and failed to alert authorities to possible laundering.

Prosecutors said the raids targeted two employees as well as other unidentified company officials. Over 170 police officers and tax investigators participated in the operation, reported.

Both the lender and prosecutors said the probe was related to the Panama Papers, a 2016 investigation into laundering networks and shell companies set up by Panama-based firm

The bank said it was fully cooperating with authorities and would release more details in due course.

The prosecutors' office said that after the police analyzed the so-called "Offshore Leaks" and "Panama Papers" reports of the International Consortium of Investigative Journalists, "the suspicion arose that helped clients with the establishment of so-called offshore entities in tax havens".

Deutsche Bank was also suspected of helping clients transfer funds from illegal activities to German accounts and failed to notify authorities of the suspected laundering.

According to the Guardian, several banks including the Swedish lenders and had already been fined for violating rules as a result of the

Prosecutors said that a subsidiary of Deutsche Bank in the had served over 900 customers, generating 311 million euros ($353 million) worth of business in 2016 alone.

Deutsche Bank shares fell 3 per cent following the news of the raid. Paperwork and electronic documents were seized by officials during the raids on the bank's properties.

The bank has been connected with another huge scandal surrounding Denmark's

Earlier this month, Deutsche said that it was involved in processing payments for the Danish bank in An internal investigation by Danske found that about 200 billion euros in payments were funnelled through its Estonian branch.

After that Deutsche said it had terminated its relationship with Danske in 2015 after "identifying suspicious activity".

Deutsche Bank has been sanctioned earlier also for failing to tackle

In September, Germany's financial regulator ordered the bank to take action to prevent money laundering and terrorism financing. It also appointed an to monitor Deutsche Bank's efforts over three years.

In 2017, Deutsche Bank was fined $630 million by US and UK regulators in connection with a Russian money laundering plan.



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First Published: Thu, November 29 2018. 18:30 IST