Investigations at Deutsche Bank’s headquarters in Frankfurt and at its branch in Berlin were launched unexpectedly today by Germany’s Federal Police, amid suspicions of the bank’s involvement in money laundering, according to Der Spiegel magazine. The case also involves Russian oligarch Roman Abramovich.

According to Der Spiegel, around 30 plainclothes police officers arrived at Deutsche Bank’s headquarters on the banks of the Main River in Frankfurt shortly after 11:00 a.m. (Greek time), acting on orders from the local Public Prosecutor’s Office for Financial Crime. The office is conducting an investigation “against as-yet unidentified executives of Deutsche Bank on suspicion of money laundering.” The bank is said to have previously maintained business relationships with foreign companies that were most likely used “to legalize proceeds from illegal activities.”

The Frankfurt Public Prosecutor’s Office stated that no further comments could be made regarding the background of the business relationships, the transactions carried out through Deutsche Bank, or the companies involved in the case.

The bank confirmed the investigations, stating that it is fully cooperating with the Frankfurt Public Prosecutor’s Office, without providing further details. “We confirm that an investigation is being conducted at Deutsche Bank’s business premises by the Frankfurt Public Prosecutor’s Office. The bank is fully cooperating with the authorities,” a bank spokesperson said.

Link between the investigation and Abramovich

The investigation appears to be linked to Russian oligarch Roman Abramovich, former owner of Chelsea FC. Abramovich has been under European Union sanctions since March 2022 due to his connection with Russia’s war against Ukraine and was a client of Deutsche Bank. According to Süddeutsche Zeitung (SZ), Deutsche Bank allegedly failed to submit timely reports for one or more of Abramovich’s companies, despite suspicions of money laundering.

The raid took place at a particularly sensitive time for Deutsche Bank, as the bank’s CEO, Christian Sewing, is scheduled to announce the highest profits in recent years on Thursday. However, bank executives are expected to face many “uncomfortable” questions regarding the case. The bank’s share price has already fallen by 3%.

Banks are required to immediately report suspicious transactions to the authorities, and failure to do so can lead to significant fines.

Deutsche Bank has already paid fines for delayed reporting related to the laundering of proceeds from illegal activities and remains under enhanced supervision by Germany’s financial regulator BaFin until the end of 2024.

The investigations recall a high-profile raid on Deutsche Bank’s headquarters in 2018, when around 170 police officers seized documents as part of an investigation into the alleged failure to report suspicious transactions processed through an offshore unit in the British Virgin Islands.

That investigation, which also covered the period from 2013 to 2018, was later dropped due to insufficient evidence of criminal conduct by employees, although prosecutors forced the bank to pay €15 million for deficiencies in its anti–money laundering controls.