Commerzbank Probe Widened To Include Chief Executive

by Ulrika Lomas, for LawAndTax-News.com, Brussels

16 August 2005

German investigators have widened their probe into money laundering activity undertaken by Commerzbank employees to include chief executive, Klaus-Peter Mueller.

Several former and current employees are under investigation following money laundering allegations involving assets from the former Soviet Union. Mr Mueller was responsible for the bank's operations in Central and Eastern Europe until 1999.

In a statement released at the weekend, Commerzbank announced that:

"As is generally known, the Frankfurt public prosecutor’s office is investigating Commerzbank employees among others in connection with suspected money laundering. The transactions in question occurred during the nineties and relate to the privatisation of the Russian telecommunications sector, which dates back some time."

"The investigation is focusing on the information that is available today. For the past few days, the chief executive officer of Commerzbank has also been included in the investigation. The chairman of the bank’s supervisory board and its management board do not understand why the investigation has been extended and expect to see Mr. Müller completely exonerated."

"The bank is confident that the examination ordered by BAFin will also contribute to this outcome. This examination, in which the bank is cooperating without any reservations, is well advanced. Legal experts consider the extension of the investigation to be a formal legal act."

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