German bank Deutsche is not new to controversy and charges of money laundering and the revelation by Panama papers have brought it discredit that refuses to die down soon. German official authorities have raided its premises in Frankfurt and other locations to search for evidence on suspicion that its employees helped clients open offshore firms in tax havens to launder millions of euros that was revealed in the Panama papers. According to prosecutors’ spokesperson Nadja Niesen the investigation was focused on two employees of Deutsche bank aged 50 and 46 years and other unidentified suspects.
The 170 member investigation team consisting of prosecutors, national police, tax investigators, and state police were involved in search the bank’s six buildings in Frankfurt, Echborn and Gross-Umstadt. This investigation began after evaluation of revelations that were made by Panama Papers and other Offshore Leaks report about offshore bank accounts. She stated that the analysis gave rise to suspicions that Deutsche Bank was assisting its clients in setting up offshore firms in tax havens and proceeds of these crimes were being transferred from there to its bank accounts which was not being reported to authorities.
The investigations revealed that in 2016 around 900 customers had transferred around 311 million euros to one such offshore entity that was located in British Virgin Islands. The employees under suspicion did not report suspicious transactions even though there was evidence to been aware of it. Deutsche Bank confirmed that authorities were conducting investigations in its branches in Germany as a part of the ongoing Panama Papers case and more details will be revealed after the search is over. The bank was cooperating completely with investigators. Shares of Deutsche bank fell sharply after the news broke during midweek and were down by 3.7 percent. The bank is already stressed with excessive exposure to derivatives and several legal risks due to which it had to pay billions of dollars in fines.