German Authorities Raid Deutsche Bank Offices in Alleged Money Laundering Case

Frankfurt prosecutors and the Federal Criminal Police Office conducted searches at Deutsche Bank’s premises Wednesday (Jan. 28) as part of an investigation into allegations of money laundering involving bank staff, according to a Wednesday (Jan. 28) report from Bloomberg.

The raids took place at the lender’s offices in Frankfurt and Berlin. According to a statement from the prosecutor’s office, the probe targeted unknown employees regarding business relationships the bank maintained with foreign entities. These foreign companies are suspected of being utilized for money laundering purposes.

News of the investigation, which was first reported by the German outlet Der Spiegel, caused a sharp reaction in the financial markets. Deutsche Bank shares extended losses following the reports, dropping as much as 3.6% in Frankfurt. By early Wednesday afternoon, the stock remained down 3.4%.

In an emailed statement to CNBC, a spokesperson for Deutsche Bank confirmed that the Frankfurt public prosecutor’s office was on-site at its offices. “The bank is cooperating fully with the public prosecutor’s office,” the spokesperson said, adding that the firm could not provide further comment at this time.

The raid represents a significant setback for Deutsche Bank CEO Christian Sewing, who has led the German lender for nearly eight years. Sewing is widely credited with orchestrating a turnaround intended to move the bank past a long era of legal scandals and financial losses. However, the institution has faced recurring scrutiny during his leadership. As recently as 2024, regulators again ordered the bank to strengthen its internal controls.

Under global banking regulations, financial institutions must maintain strict oversight of capital flows to prevent illicit movements. While Deutsche Bank has reportedly invested heavily to improve its defenses against such activities, it has historically faced criticism for deficient internal bulwarks. In September 2025, the bank’s CFO James von Moltke warned investors that banking regulations in the U.S., which are looser than those in the EU, could potentially give American banks a competitive edge when it comes to attracting clients.

The timing of the law enforcement action is particularly sensitive for the lender, as it is scheduled to report its fourth-quarter earnings on Thursday (Jan. 29). The investigation remains ongoing as authorities continue to scrutinize the bank’s past business relationships. Neither the prosecutor’s office nor the bank has identified the specific employees under investigation at this stage.