(Jan 28): Deutsche Bank AG offices were raided by German authorities as part of a money laundering probe looking at past dealings with the now-sanctioned Roman Abramovich, according to people familiar with the matter.
The lender “has maintained business relationships in the past with foreign companies which, in turn, are suspected of having been used for money-laundering purposes as part of further investigations,” the prosecutor’s office said in a statement without identifying the companies. It’s conducting a raid at Deutsche Bank premises in Frankfurt and Berlin to investigate the matter, it said.
“We confirm that the Frankfurt public prosecutor’s office is on site in our offices,” a Deutsche Bank spokesperson said in an emailed statement, while declining to comment on any link to Abramovich. “The bank is cooperating fully with the public prosecutor’s office.”
The allegations relate to transactions for the period 2013 to 2018, one of the people familiar said.
A representative for Abramovich didn’t immediately respond to a request for comment. The newspaper Sueddeutsche Zeitung first reported the news.
Shares in the German bank extended losses on the news, dropping as much 3.9% in Frankfurt. They were trading 2.7% lower as of 2.55pm.
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The raid is a setback for Deutsche Bank chief executive officer Christian Sewing who is widely credited with turning around the lender and drawing a line under a long period of scandals and losses after taking over almost eight years ago. The bank has repeatedly been raided in the past.
Banks are required to maintain strict controls on the money flowing through them in an effort to prevent illicit movements. Deutsche Bank in the past was often criticised for deficient controls around such activities and it has invested heavily to improve them.
Abramovich made his fortune in Russia’s metals and energy industries and became internationally known after purchasing the UK Chelsea Football Club. Abramovich enjoys “privileged access” to Russian President Vladimir Putin that helps him “to maintain his considerable wealth”, the European Union said in March 2022 when it sanctioned him.
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The lender reports fourth-quarter earnings on Thursday.
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