News World Police search offices of Deutsche Bank board members

Police search offices of Deutsche Bank board members

Police have searched the offices of all the members of Deutsche Bank’s board as part of an investigation into money laundering allegations linked to the Panama Papers, a source told Reuters on Friday.

Shares in Germany’s largest bank fell 3 percent and touched a record low as a raid that began on Thursday at the bank’s towering Frankfurt headquarters extended into a second day.

Deutsche has said it is cooperating with investigators and declined further comment on Friday. Deutsche Bank shares have lost around half of their value this year, with the company now worth only around 17 billion euros ($19.3 billion).

The raid comes as Deutsche Bank tries to repair its tattered reputation after three years of losses and a list of financial and regulatory scandals.

Christian Sewing, appointed chief executive in April to help the bank rebuild, has trimmed its U.S. operations and reshuffled its management board, but revenue has continued to slip.

Investigators are looking into the activities of two unnamed Deutsche Bank employees alleged to have helped clients set up offshore firms to launder money, the prosecutor’s office has said. The inquiries focus on events from 2013 to this year.

Gerhard Schick, a member of parliament for the opposition Green party, said it was “particularly irritating” that the bank’s current board members oversaw operations during the time in question. “This is not about legacy issues,” he said in a statement to Reuters.

BOARD MEETING

This week’s events raise the stakes of a regularly scheduled meeting of the bank’s supervisory board planned for Dec. 4.

The prosecutor said on Thursday the investigation had been triggered after investigators reviewed information in the Panama Papers, consisting of millions of documents from Panamanian law firm Mossack Fonseca leaked to the media in April 2016.

Around 170 police officers, prosecutors and tax inspectors began the raid on Thursday, seizing written and electronic documents. Only one police car was visible outside the bank’s headquarters early on Friday.

Deutsche Bank’s controls that aim to prevent money laundering have caught the attention of regulators on both sides of the Atlantic.

Schick, who is also chairman of Finanzwende, a grassroots financial watchdog initiative, pointed the finger at Germany’s financial market regulator, BaFin.

BaFin said its critics had misunderstood the situation, and that supervisors and prosecutors played diffferent roles.

In January, BaFin president Felix Hufeld said the agency had found no evidence of substantial breaches of money laundering rules by the banks named in the Panama Papers.

In September, BaFin ordered Deutsche Bank to do more to prevent money laundering and “terrorist financing,” and appointed KPMG as third party to assess progress.

On Thursday, as the raids were going on, the vice chairman of supervision for the U.S. Federal Reserve, Randal Quarles, met Deutsche Bank management for an unrelated and previously scheduled appointment at the bank’s headquarters, a spokesman for the Fed said.

(Reuters)

Top Stories

WHO pauses trial of hydroxychloroquine in COVID-19 patients due to safety concerns

The World Health Organization has suspended testing the malaria drug hydroxychloroquine in COVID-19 patients due to safety concerns, WHO Director General Tedros Adhanom Ghebreyesus...

UK to reopen thousands of shops in easing of coronavirus lockdown

Britain will reopen thousands of high street shops, department stores and shopping centres next month, Prime Minister Boris Johnson said on Monday, setting out...

Repeat positive cases ‘released’ three weeks from first diagnosis

The Health Ministry issued instructions on Friday on the release / ending of isolation for patients who tested positive to Covid-19 but are not...

Two new Covid cases in education and repatriations

Two new coronavirus cases were reported today by the health ministry, a drop from yesterday's eight, out of a total of 2128 tests, raising...

Minister: Back to school for 769 pupils with disabilities

  More than 760 children with disabilities who were told they could not go back to school when primary and lower secondary schools reopened last...

Taste

Traditional salads that will blow your mind away

This traditional salads will make you actually love salads! Cyprus may be famous for souvla and kleftiko but if you try the traditional salads with...

Honey Balls

As you stroll down Onasagorou street in the old city of Nicosia and suddenly feel the need for something sweet, follow the smell of...

Octopus with Oregano

Ingredients: (Serves 4) 1 kg octopus ½ tsp dry oregano Pepper 3 tbsp olive oil 2 tbsp vinegar or lemon juice Preparation: Clean the octopus thoroughly under cold running water. Place the octopus...

Fish meatballs

In a bowl, mix the finely chopped onion and parsley. Boil the fish, cut into small pieces and add to the bowl. Add salt...