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(Bloomberg) — Deutsche Bank AG was raided by German authorities on Wednesday as part of a money laundering probe looking at past dealings by staff with firms linked to the now-sanctioned Roman Abramovich, setting back the lender’s long-running effort to shed a previous reputation as a magnet for scandals.
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Speaking at a previously scheduled earnings press conference the following day, Deutsche Bank Chief Executive Officer Christian Sewing said the investigation related to transactions between 2013 and 2018.
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“The starting point is an allegedly late report of suspected money laundering,” Sewing said. “On this basis, the public prosecutor’s office is investigating whether there are any indications of possible money laundering.”
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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 Frankfurt prosecutor’s office said in a statement Wednesday without identifying the firms.
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It’s raiding Deutsche Bank premises in Frankfurt and Berlin to investigate the matter, it said. Prosecutors haven’t named any suspects yet.
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“The searches haven’t been formally concluded,” the agency said on Thursday when contacted again.
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The firms are linked to Abramovich, people familiar with the matter said, asking not to be identified discussing an ongoing investigation. Abramovich himself isn’t being investigated, other people said.
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Deutsche Bank “is cooperating fully,” the lender said in a statement on Wednesday.
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Abramovich “has no connection to these searches and is neither under investigation nor suspected of any wrongdoing,” a representative for the billionaire said in an updated statement on Thursday.
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Setback for Sewing
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It’s a setback for Sewing who is widely credited with turning around the lender. He’s drawn a line under a long period of scandals and losses after taking over almost eight years ago.
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Deutsche Bank has repeatedly been searched in the past and the latest instance could reopen memories of a time when regulators around the globe where criticizing the firm for failing anti-money laundering controls, and sometimes ended up imposing fines on it over the matter. The bank’s share price dropped on the news on Wednesday.
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The developments also overshadowed Deutsche Bank’s earnings report on Thursday. The lender disclosed a record full-year profit and unveiled a new share buyback.
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Stock Drop
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Shares in the German bank closed down about 2% on Wednesday and continued to fall on Thursday after the publication of the firm’s results.
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Media outlet Sueddeutsche Zeitung first reported the news.
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Deutsche Bank was under various CEOs between 2013 and 2018, including Anshu Jain and John Cryan. Sewing took over in April 2018, though he has been a member of the lender’s executive board since 2015.
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