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Prosecutors searched Deutsche Bank’s headquarters in the money laundering investigation

A logo is displayed above Deutsche Bank AG’s headquarters in Aurora Business Park in Moscow, Russia.

Andrey Rudakov | Bloomberg | Getty Images

Prosecutors, federal police and other officials searched Deutsche Bank’s headquarters in Frankfurt on Friday in a move that Germany’s largest lender said was linked to suspected money laundering, which it had reported to authorities.

Under CEO Christian Sewing, Deutsche Bank has tried to repair its reputation after a series of embarrassing and costly regulatory errors.

In a statement, Deutsche Bank said that the search involved suspicious transactions, which it had itself disclosed to the authorities, and that it fully cooperated.

Prosecutors said they had a search warrant, but declined to elaborate. They said representatives of the Financial Supervisory Authority BaFin also attended.

BaFin and the federal police declined to comment.

The bank’s shares fell more than 3% after the news of the search and fell 2.7% in the early afternoon in Frankfurt.

Problems with money laundering have previously brought the bank into hot water.

The U.S. Department of Justice has been investigating it for years, for example over trades that authorities said were used to launder $ 10 billion out of Russia, which has led to the German bank being fined nearly $ 700 million.

In 2018, BaFin took the unusual step of installing KPMG as a dedicated monitor at Deutsche to monitor progress in money laundering controls.

Last year, BaFin ordered Deutsche to introduce additional safeguards to prevent money laundering, and the regulator extended the auditor’s mandate.

Deutsche has said it has increased resources to combat money laundering.

This week, the bank had an increase of 17% better than expected in the first quarter profit as investment banking revenue increased, but it warned that the conflict in Ukraine could hurt annual earnings.

A Reuters witness said there were no signs of authorities outside the bank’s headquarters on Friday.

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