Deutsche Bank AG (NYSE: DB) was set to open Thursday down 4.5 percent after German prosecutors raided its Frankfurt headquarters in a money-laundering investigation.
They now allege more than 900 Deutsche customers funneled €311 million through a subsidiary in the British Virgin Islands in 2016, and they accuse two staff members of processing suspicious transactions, according to reports.
Deutsche Bank’s main office and other sites throughout the capital were searched in an operation engaging about 170 police officers and officials.
Why It’s Important
This isn’t Deutsche Bank’s first high-profile scandal. Earlier this month, management confirmed the bank had previously processed payments for Denmark’s Danske Bank in Estonia, many of whose €200 billion volume has been deemed suspicious.
In September, Deutsche Bank was sanctioned domestically for enabling money laundering and terrorist financing. German regulators ordered an independent auditor to monitor all the bank’s activities for the next three years.
Last year, U.S. and UK regulators fined the bank $630 million for facilitating the illegal transfer of $10 billion out of Russia through its New York, London and Moscow operations.
Management said it's fully cooperating with authorities and will release details as they become available.
At time of publication, Deutsche Bank shares were trading down 3.1 percent to $9.58 in the pre-market session.
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