Deutsche Bank Involved In Money Laundering Scandal, Shares Hit Record Low

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Today, the shares in Deutsche Bank hit record lows following the confirmation of the German bank that it was involved in the Danske Bank money-laundering scandal.

Weak earnings, political turmoil, and a management shakeup in Italy and Turkey saw the shares of Deutsche Bank hit multiple lows this year. Currently, concerns regarding its involvement in the = biggest money-laundering scandal in Europe are weighing on the stock after the key whistle-blower pointed a finger at the bank. A person who was briefed on the matter said that BaFin, a German supervisor, is also asking for more information regarding its relationship with Danske.

Last Monday, Howard Wilkinson, the Danske whistleblower, had claimed that a major European lender was involved in processing up to $150 billion (£117 billion) in suspicious payments.

Wilkinson is the former head of the trading unit of Danske Bank in the Baltics between the period of 2007 and 2014 made the claims to a Danish parliamentary hearing. It is looking into the payments that have a total of €200 billion (£178 billion) that were made through the Estonian branch of the lender.

In a statement for Reuters, A spokesperson from Deutsche Bank, stated: “Our role was to process payments for Danske Bank. We terminated the relationship in 2015 after identifying suspicious activity.”

The shares in the German bank dropped by 4.8 per cent to all-time lows of 8.15p. It has now dropped by 48 percent this year so far.

Wilkinson is from the United Kingdom. He also implicated that two US banks and the Department for Justice have inquired about the involvement of the Bank of America and JP Morgan in the said scandal.

The scandal over Danske has erupted globally. It has inquiries that are already underway in Estonia, Denmark, the United Kingdom and the United States pf America. The Danish lender has acknowledged that its branch in Tallinn moved almost a quarter of a trillion dollars – much of it from a potentially illegal activity – out of Russia and into the global banking system. Both the chair and chief executive of Danske Bank have both been dismissed from their posts as part of the fallout.