Dividends and Deutsche Bank offices in Germany searched in money-laundering probe tied to Panama Papers

In the world of tax havens and offshore banking, everything is supposed to be secret because in reality, there is a mixture of funds in the accounts. Some of it is from criminals, some of it is from people hiding money from spouces, some of it is money hiding from taxes because people hate paying too much tax and some of it is government money needed to keep the world safe. It is easier to point fingers and suggest it should not be done but for years trying to avoid taxes and the governmnet is a time honored tradition.

In 2016, papers from a law firm’s accounts in Panama which specialized in offshore accounts was leaked to the press. In 2016, 900 customers from Deutsche Bank were served by the British Virgin Islands generating a volume of E$ 311 million or $470 million in US dollars.

According to an article by Arno Schetze and Tom Sims of Reuters, in late November Deutsche Bank offices were visited by 170 police officers looking for files. The probe focuses on the years from 2013 to 2018. The police spokesperson alleged the bank employees forgot to report money-laundering suspicions about their clients and devised offshore companies to evade taxes.

Last year, the bank was fined $700 million for allowing money to flow between Moscow, London and New York.

Linking to dividend paying stocks, it is hoped that most profitable companies play within the rules and not completely evade taxes. It is one thing to move operations to the lowest tax but the company still pays something. One of the taxes, President Trump offered to companies was lowering the amount of money being kept outside of the US. Billions have come back, mostly to buy back stocks. If you are making lots of money, donate some – you will be given a legit tax break and it allows you to sleep at night.

There are more questions than answers, til the next time – to raising questions.

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