The German authorities searched
Deutsche Bank AG of
headquarters in Frankfurt on Friday, a move the bank said was related to reports of suspicious activity it had submitted to an anti-money laundering agency.
Agents from the Frankfurt prosecutor’s office, the German financial regulator BaFin and the federal police were present at Deutsche Bank with a search warrant issued by the Frankfurt local court, the prosecutor’s office said in a statement. declare. It said it could not provide more information.
A spokesman for Deutsche Bank said the bank was cooperating fully with the authorities.
The bank’s shares fell more than 3% following the news.
Banks warn authorities about suspicious transactions, including money laundering, through so-called suspicious activity reports. They are expected to be timely. Authorities then decide whether to investigate the incident.
In the past, Deutsche Bank has had trouble with regulators over money laundering detection compliance. It paid fines in the US for not properly monitoring deals with late financier and convicted sex offender Jeffrey Epstein and for its role as a Correspondent bank for Estonian branch of the
where about $230 billion has flowed from Russia and other former Soviet states over the years with minimal oversight.
Last year, the Federal Reserve told Deutsche Bank that does not address persistent shortcomings in anti-money laundering controls. At the same time, BaFin order the bank to put in place further internal safeguards and comply with due diligence obligations.
Deutsche Bank is Germany’s largest lender and Fed-regulated dollar clearing bank, a major player in global financial transactions.
The bank said it was devoting resources to improving controls and preventing and detecting money laundering. CEO Christian Sewing is trying to show his bank has changed and is no longer a troubled lender constantly embroiled in financial scandals.
Bank strong financial results earlier this week, a sign of an overhaul to make it leaner and more focused on the dividend-paying German customers. However, the outlook was dimmed on the war in Ukraine and rising inflation.
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