Police Raid Deutsche Bank on Money Laundering Charges

DW reports German Police Raid Deutsche Bank Over Suspected Money Laundering.

Federal police on Thursday raided the Frankfurt offices of Deutsche Bank. The Frankfurt prosecutor’s office said the raids stemmed from an investigation into suspected money laundering at the German bank.

About 170 law enforcement agents took part in the operation. The investigation revolves around multiple Deutsche Bank employees, including two believed to still be working at the financial institution. 

According to prosecutors, Deutsche Bank is suspected of helping some 900 customers setup offshore shell companies in tax havens to “transfer money from criminal activities.” They said some €311 million ($354 million) is believed to have been laundered, citing information gleaned from the so-called “Panama Papers.”

The “Panama Papers” data leak comprised some 11.5 million documents and was leaked to German newspaper Süddeutsche Zeitung by an anonymous source in 2015. At least 28 German entities were identified in the leak, according to reports at the time, including Deutsche Bank.

In the past, Deutsche Bank has acknowledged that its anti-money laundering efforts have fallen short of financial rules. In August, it confirmed that even after it was fined for helping Russian clients wash some $10 billion (€8.8 billion), its mechanisms to stop such criminal activity were still inefficient.

Deutsche Bank Monthly Chart

Fines vs Market Cap

https://twitter.com/FerroTV/status/1068085353238724609

Its derivatives book is also a suspicious mess and it flunked a Fed stress test.

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Six000mileyear
Six000mileyear
5 years ago

The story the stock chart tells is: management doesn’t care about the stock price when a great deal of money has been made laundering money.

hmk
hmk
5 years ago

Wasn’t this legal at some point and weren’t Swiss banks the ones doing it in the past untill Uncle Sams jackboot put a stop to it? You can kill someone in the US or Europe and get away with a slap on the hands but its a capital offense if you deprive the govt pigs of their tax money. Maybe if govts would just let these guys pay taxes on their ill gotten gains without asking any questions it might make things a lot simpler as well as bring in some tax revenue. The money would stay in the country of origin or if it was moved overseas the reciepiant country banks wouldn’t have to go through all the regulatory garbage imposed upon them to stop the “laundering”.

KidHorn
KidHorn
5 years ago
Reply to  hmk

Are you sure the banks aren’t paying taxes? The whole point of money laundering is to make illegal income look like legal income. Paying taxes and all.

KidHorn
KidHorn
5 years ago

Are there any banks that aren’t crime syndicates?

Stuki
Stuki
5 years ago
Reply to  KidHorn

Not anymore. If any of them tried to be, they would be either thrown in jail or out competed.

sunny129
sunny129
5 years ago
Reply to  KidHorn

Just scratch the surface, virtually all mega global banks are involved in money laundering.BAC with Mexican drug cartel is well recorded! The regulators are complicit!

Runner Dan
Runner Dan
5 years ago
Reply to  KidHorn

The indictment of money laundering is simply the crime of have the least effective lobbying force on the neighborhood banking block.

Tengen
Tengen
5 years ago

Is it too much to hope this could ever happen here in the US, say to Goldman?

Then again, Wells Fargo had 5300 employees involved in scamming customers with fake accounts but wiggled out with the argument that all those employees acted independently and nobody knew. If you can get away with that, I’m not sure what warrants a raid here.

As for money laundering, we’ve done that with Latin American drug money for a long time and more recently with Afghan heroin money. Nobody seems to care, though.

Stuki
Stuki
5 years ago
Reply to  Tengen

Money laundering, like tax evasion, are only crimes in the childish minds of well indoctrinated progressive drones.

No legitimate government has the remotest clue where someone’s money comes from. Nor how much of it anyone happens to have. The level of society wide spying required for them to know that, goes way, way beyond even the most generous possible definition of legitimate.

Murdo McSponge
Murdo McSponge
5 years ago

What is to be expected from a German outfit like DB? Germans like to portray themselves as “whiter than white” (or is that an unacceptable term in these pc days?) when in fact they are as crooked as everyone else; probably more so. Cars, money laundering, fixing the Euro to their benefit and putting hundreds of thousands – a whole generation – of young Italians, Greeks, Portugese, Spaniards out of work. No wonder the Brits voted for Brexit.

Ron Cataldi
Ron Cataldi
5 years ago
Reply to  Murdo McSponge

You think German banks are particularly corrupt? I would remind you of the cast of characters involved in the gold price fixing scandal… plenty of British banks. And let’s not even get into US banks… Wells Fargo alone could fill a book with crimes…

caradoc-again
caradoc-again
5 years ago
Reply to  Murdo McSponge

Well said. Hypocriscy abounds.

Not to mention regulatory capture of the EU by German multinationals.

caradoc-again
caradoc-again
5 years ago

About time. The whole EU bank set-up stinks and dig deep enough you’ll find bodies all over the place.

Even if they performed these activities DB still can’t make money & stress tests have to be bent to help them pass. It’s all a sick joke.

Oh, and guess what, employees (probably lower level) will be on the hook but no one goes after those supposedly overseeing operations. Tell me management didn’t know what was going on.

Bam_Man
Bam_Man
5 years ago
Reply to  caradoc-again

Apparently management at these crooked banks are paid to NOT know what’s going on.

caradoc-again
caradoc-again
5 years ago
Reply to  Bam_Man

Teflon people, they sit cool through the heat and nothing sticks.

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