Raid on Deutscher Bank: an offshore company suspected for years

The raid on Deutsche Bank is apparently linked to an offshore company, which should be involved in dubious activities: NDR, WDR and SZ has been operating until 2017 as a subsidiary of Deutsche Bank.

By Jan Lukas Strozyk, Benedict Strunz, Philipp Eckstein, NDR

The raid on Deutsche Bank concerns information from NDR, WDR and "Süddeutsche Zeitung" apparently in relation with the company "Regula Limited" based in the British Virgin Islands. According to the Panama Papers, the company was active at least until May 2016. On its website, Deutsche Bank also continues to manage "Regula" as a wholly-owned subsidiary. The company was, as suggested by the Panama Papers, used among other things to manage the mail companies of Deutsche Bank clients. The company has also been appointed director of other mailbox companies.

Suspected tax crimes

The Frankfurt Public Prosecutor announced today that Deutsche Bank had more than 900 clients through a company based in the British Virgin Islands in 2016 alone, with a volume of # 39; business of 311 million euros. The prosecutor's office did not name the name of the company. Investigators have suspected funds from suspected tax evasion activities on mailbox companies located in the British Virgin Islands.

NDR and SZ had already reported on "Regula Limited" in 2013 as part of the "offshore leakage". Even then, a spokesman for Deutsche Bank said that it was impossible to comment on the company in question, but that all legal requirements were met.

As a result, in 2016, with the "Panama Papers", Deutsche Bank has concluded other activities with customers via the "Regula Limited" of. Reporters NDR, WDR and SZ last spoke to Deutsche Bank in a concrete way at the beginning of the summer. At that time, a spokesman said the bank could not comment on the company's goals because the information about it was subject to "trade secret".

In general, he stated that Deutsche Bank ensured that "all the rules and regulations relating to customer identification and the fight against money laundering are respected". He also stated that there are policies and procedures designed to "recognize and control the risk of misuse of the bank for these purposes".

Looking only for the prelude to further investigation?

Investigators say that the searches carried out at Deutsche Bank could be only the prelude to new investigations on the Panama Papers. The Federal Criminal Police Office had purchased the data from an unknown source and evaluated them in the specially created "Olet" unit.

During the past year, the Federal Financial Supervisory Authority, BaFin, had reported having audited German banks in connection with the claims made in the revelations. "We were investigating whether German banks were also involved in transactions with fictitious companies and other tax-saving structures that were going through the Panamanian law firm Mossack Fonseca, and we wanted to know if they were violating money laundering regulations, "said Felix Hufeld, head of BaFin, in January 2018. After reviewing the BaFin, it appears that none of the institutions n? has "seriously infringed the anti-money laundering regulation".

"Failure of mbadive supervision"

Fabio de Masi, Deputy Leader of the Left in the Bundestag, said: "This is a mbadive surveillance." BaFin is now part of the problem, not the solution. "

Sven Giegold, the European Parliament's financial expert at the European Parliament, said: "BaFin has been negligent with banks for financial crime for years and it is good that the law enforcement authorities are now serious." BaFin declined to comment on the events and referred them. to the prosecutor.

Deutsche Bank said: "We felt that we had provided the authorities with all the relevant information on the Panama Papers and, of course, we will work closely with the Frankfurt Public Prosecutor because we We also want to clarify any suspicions. "Regula Limited was" sold "at the end of March 2018.