Police raid on Deutsche HQ over Panama Papers exposé

GERMAN police raided the headquarters of Deutsche Bank yesterday in connection with a major money-laundering probe.

Around 170 police officers, prosecutors and tax inspectors stormed the Frankfurt offices, seizing documents and electronic records.

Prosecutors have accused two unnamed employees of helping clients to set up offshore companies to launder money.

The investigation focuses on the years 2013 through to 2018 and follows the publication of the so-called Panama Papers two years ago.

Deutsche Bank, the Continent’s biggest lender with large operations in the City, said it is co-operating with authroities.

‘It is in our interest to clarify the facts,’ it added.

Images from the raids spread quickly across social media and sent shares plunging nearly 5pc in early trading.

They later recovered, and closed down 3.8pc.

It is a fresh blow to Deutsche, which is trying to mend its reputation after years of hefty losses and scandals. Christian Sewing became chief executive in April and has slimmed down US operations and shaken up the management board, but revenues continue to slide.

Prosecutors said yesterday’s raid was triggered by the release of the Panama Papers, a cache of millions of documents from Panamanian law firm Mossack Fonseca, which were leaked and published in April 2016.

The documents listed more than 15,000 companies set up by individuals and organisations who wanted to keep their financial affairs secret.

Deutsche Bank staff are alleged to have helped clients set up offshore companies in tax havens so that funds transferred to accounts at Deutsche could get around anti-money laundering rules.

In 2016 alone, more than 900 customers were served by a subsidiary registered on the British Virgin Islands, generating around £276m.

Prosecutors said Deutsche Bank staff may have breached their duties by neglecting to report money-laundering suspicions about clients.