German prosecutors allege that two staff members at the bank helped clients launder money from criminal activities using offshore accounts in the British Virgin Islands.
Frankfurt prosecutors' spokeswoman Nadja Niesen said the investigation was focused on two Deutsche Bank employees, aged 50 and 46, and possibly other not-yet identified suspects.
Deutsche Bank said it was "fully cooperating" with the authorities on the case which it said was "related to the Panama Papers".
Deutsche Bank's Frankfurt offices were searched Thursday as part of a probe linked to the Panama Papers.
Deutsche Bank has been under pressure after three consecutive years of losses.
They also said Deutsche Bank employees are alleged to have breached their duties by neglecting to report money laundering suspicions about clients and offshore companies involved in tax evasion schemes.
The probe, he said "goes through Deutsche Bank and all the Kushner shit".
JOE RAEDLE GETTY IMAGESLaw firm Mossack Fonseca which specialised in setting up offshore companies was at the centre of an international scandal
"There is now suspicion that most of the money stems from foreign tax offences".
The raids at six offices in Frankfurt prompted shares in the lender to fall 3%.
"... Most importantly, the lack of transparency and regulatory control have made cryptocurrencies a target for criminal purposes and we know that they on several occasions have been involved in criminal transactions like money laundering or extortion", it reads.
The German lender may have helped clients in setting up offshore companies in tax havens. "Germany owes to the world to clamp down on this dark side of its economy".
Several banks, including the Swedish lenders Nordea and Handelsbanken have already been fined by financial regulators for violating money laundering rules as a result of the Panama Papers. We will be issuing further details in due course.
Analysts say that because these transactions can be lucrative, banks have few incentives to do more than the minimum required by law to check on the identity of a bank.
The bank said at the end of October that it expected to report a net profit for the first time since 2014, not least because no legal settlements in the hundreds of millions or even billions were on the horizon as in previous years.
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