Deutsche Bank’s Frankfurt offices have been raided by German police this morning in a suspected money laundering investigation.
More than 170 police took part in the operation which was targeting two staff members who are alleged to have set up off-shore firms for clients to launder money from criminality.
— Moritz Zimmermann (@zimmmori) November 29, 2018
According to a statement from German prosecutors, two employees, aged 46 and 50 were the targets of the raids.
Prosecutors said a probe into the Panama Papers, files from the law firm Mossack Fonseca that were leaked online, showed Deutsche may have helped clients set up off-shore accounts in tax havens to launder criminal proceedings.
No signs yet of Deutsche Bank market contagion.
Big clients won't jump ship because of money laundering – only if they think bank has financial problems.
So the question is whether another ML scandal + weak earnings tips $DBK over the edge?
— Jasper Lawler (@jasperlawler) November 29, 2018
The bank's share price fell 3.3 per cent in early morning trading.
A Deutsche spokesperson said: "As far as we are concerned, we have already provided the authorities with all the relevant information regarding Panama Papers. Of course, we will cooperate closely with the public prosecutor's office in Frankfurt, as it is in our interest as well to clarify the facts. In recent years, we have proven that we fully cooperate with the authorities – and we will continue to do so."