A major European investment bank is under investigation as part of an inquiry into Russia-linked money laundering involving Roman Abramovich, German officials have revealed.
Deutsche Bank’s main offices in Frankfurt and Berlin have been raised as German police look into whether the financial institution committed alleged money laundering violations.
The investigation centres on suspected wrongdoing connected to the bank’s commercial dealings with firms associated with Roman Abramovich, the Russian billionaire, as reported by Sueddeutsche Zeitung on Wednesday.
It should be noted that, while prosecutors have confirmed the searches took place, they have so far declined to identify specific individuals under scrutiny from officials.
Deutsche Bank is under investigation over alleged money laundering linked to Roman Abramovich
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Based on the German newspaper’s reporting, Deutsche Bank faces allegations of failing to flag potential money laundering activities within the required timeframe.
The Frankfurt public prosecutor’s office stated it was conducting an inquiry into “unknown responsible parties and employees of Deutsche Bank on suspicion of money laundering… and related additional allegations under the Anti-Money Laundering Act”.
A spokesman for the prosecutor’s office told AFP that “in the past, Deutsche Bank maintained business relationships with foreign companies that… are themselves suspected of having been used for the purpose of money laundering”.
This probe by German authorities is being conducted jointly by a specialist unit focused on economic crime and federal police officers.
Roman Abramovich was a popular owner during his time at Chelsea | PA
Abramovich has faced EU sanctions imposed in response to Russia’s military aggression against Ukraine.
Deutsche Bank acknowledged the searches had occurred and indicated it was “cooperating fully with prosecutors”, though the lender refused to provide additional comment.
According to Der Spiegel, the operation at the Frankfurt headquarters commenced shortly after 10am and saw approximately 30 investigators in plain clothes enter the premises.
Prosecutors have not disclosed further details about the scope of their investigation or whether any specific transactions are under examination.
Lloyds Banking Group has been fined over facilitating transactions between Russia and the West
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PAThe bank’s statement offered no indication of how long the inquiry might continue or what documents authorities were seeking.
In recent months, other financial institutions have come under fire for facilitating unapproved banking transactions between Russia and Western nations.
Earlier this week, Lloyds Banking Group was hit with a hefty fine from regulators after breaching Government sanctions on processing Russian payments.
The Office of Financial Sanctions Implementation (OFSI) imposed a £160,000 penalty on Bank of Scotland after the subsidary bank processed transactions that contravened UK sanctions targeting Russia.
The alleged money laundering is linked to Russia
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ReutersTreasury officials determined that the bank handled 24 separate payments connected to a personal current account belonging to a British national who appears on the Government’s sanctions list.
A spokeswoman for Lloyds Banking Group stated that the company “takes its regulatory responsibilities extremely seriously” despite breaking sanctions.
The grouo shared: “We acted swiftly and transparently, proactively referring this one-off, isolated matter to OFSI and working closely with them throughout.”
Lloyds added that it has since enhanced its controls to maintain the highest standards of risk management and governance.