BERLIN 

German prosecutors raided Deutsche Bank's headquarters, searching for evidence related to suspected money laundering involving a sanctioned Russian billionaire, local media reported on Wednesday.

According to the Suddeutsche Zeitung newspaper, the investigation focuses on Deutsche Bank's alleged failure to promptly report suspicious transactions involving companies linked to Roman Abramovich, the Russian billionaire who has been under EU sanctions since March 2022.

Investigators searched both Deutsche Bank's Frankfurt headquarters and Berlin offices just one day before Chief Executive Christian Sewing was scheduled to announce the bank's highest profit in years at an earnings news conference.

A spokesperson for the Frankfurt Public Prosecutor's Office confirmed that the office, together with the Federal Criminal Police Office (BKA), is investigating unknown individuals and employees of Deutsche Bank on suspicion of money laundering and related violations under the Money Laundering Act.

Under German law, financial institutions have a legal obligation to report any transactions that appear suspicious to the relevant authorities without delay. Banks that fail to fulfill this reporting requirement in a timely manner face administrative fines or, in severe cases, higher penalties.