Home Finance Prosecutors search Deutsche Bank HQ in money laundering investigation

Prosecutors search Deutsche Bank HQ in money laundering investigation

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The headquarters of Germany’s Deutsche Financial institution are pictured in Frankfurt, Germany, September 21, 2020. REUTERS/Ralph Orlowski/File Photograph

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  • Prosecutors have search warrant
  • Monetary regulator and federal police additionally concerned
  • Financial institution has been making an attempt to scrub up status
  • 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 mentioned was linked to suspicions of cash laundering it had reported to the authorities.

Underneath Chief Government Christian Stitching, Deutsche Financial institution has been making an attempt to restore its status after a collection of embarrassing and dear regulatory failings.

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

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Prosecutors mentioned they’d a search warrant however declined to elaborate. They mentioned representatives of economic 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 2.7% in early afternoon in Frankfurt.

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

The U.S. Division of Justice has been investigating it for years, for instance, over trades that authorities mentioned had 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 weird step of putting in KPMG as a particular monitor at Deutsche to supervise progress on cash laundering controls.

Final 12 months, BaFin ordered Deutsche to enact additional safeguards to forestall cash laundering and the regulator widened the auditor’s mandate.

Deutsche has mentioned 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 may damage annual earnings.

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

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Reporting by Tom Sims, Frank Siebelt and Reuters TV; Modifying by Thomas Escritt, Jason Neely and David Clarke

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