Deutsche Bank HQ searched in money-laundering investigation

Deutsche Bank’s headquarters in Frankfurt was searched by prosecutors on Thursday morning in an investigation over money-laundering allegations.

Two of the bank’s employees were targeted as suspects in the case that is linked to Panama Papers, Reuters reported.

Around 170 officials and police were involved in the raids and said the bank is fully cooperating with the authorities in the numerous German locations searched.

The investigation is trying to evidence that the bank aided clients in setting up offshore accounts in tax havens where it is suspected that the operations could have been used to launder money.

It’s not the first time the bank has been involved in alleged money-laundering scandals, with German banking watchdog BaFin publicly rebuking Deutsche in September and ordering the lender to step up actions against money laundering and potential terrorism financing.

Deutsche is also facing questions about its involvement with Danske Bank's Estonian branch, which is embroiled in a €200bn money laundering scandal.

Deutsche Bank shares fell as much as 3.7% percent in Frankfurt on Thursday as a reaction to the news.

On Thursday the bank also announced its head Garth Ritchie could be replaced due to doubts regarding his suitability to run the investment banks after continued underperformance at the unit, reported The Financial Times.

According to the FT, several people briefed on the matter said there was growing unease within the entity over its continued clash with regulators.