The large-scale sweeps were conducted today by about 170 police officers, prosecutors and tax inspectors. Starting at 10 a.m. local time, officers descended on six buildings in Frankfurt, where Deutsche Bank has its headquarters, as well as premises - including at least one suspect's home - in nearby Eschborn and Gross-Umstadt.
Police walk in front of Deutsche Bank headquarters in Frankfurt, Germany, on November 29, 2018. The "Panama Papers" data leak comprised some 11.5 million documents and was leaked to German newspaper Süddeutsche Zeitung by an anonymous source in 2015.
The claims had first surfaced in the "Panama Papers" investigation, published by an worldwide consortium of journalists in 2016.
Prosecutors said they were looking at whether Deutsche Bank may have assisted clients to set up offshore companies in tax havens, so that funds transferred to accounts at Deutsche Bank could get around anti-money laundering safeguards.
In 2016 alone, more than 900 customers were served by a Deutsche Bank subsidiary registered on the British Virgin Islands, generating €300m, the prosecutors said.
The investigation relates to the Panama Papers.
"... 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. "In recent years, we have proven that we fully cooperate with the authorities - and we will continue to do so".
Deutsche Bank shares fell as much as 4.7 per cent on Xetra.
Money laundering has become a growing problem in Europe, where a series of scandals has exposed lax regulation.
In the past, Deutsche Bank has acknowledged that its anti-money laundering efforts have fallen short of financial rules.
The bank is being investigated over money-laundering suspicions raised by the 2016 data leak.
The news comes as Deutsche Bank tries to fix its tattered reputation after three years of losses and a drumbeat of financial and regulatory scandals.
Citing people familiar with the matter, Bloomberg News had reported that Deutsche was the unnamed bank a Danske whistleblower said had handled nearly $150 billion of suspect transactions originating in the Danish firm's Estonian branch.
The bank has already recorded annual loses after agreeing to pay a $7.2 billion settlement with United States authorities after it sold toxic mortgage agreements prior to the 2008 financial crash.
US Attorney General Loretta Lynch said at the time that "Deutsche Bank did not merely mislead investors: it contributed to an global financial crisis".