German prosecutors raid ministries in money laundering probe

German prosecutors searched the finance and justice ministries on Thursday as part of an investigation into the government’s anti-money laundering agency.

Prosecutors are probing the Finance Intelligence Unit — an agency in the finance ministry that is headed by Social Democrat chancellor candidate Olaf Scholz — to find out if the group was instructed to disregard warnings of suspect payments made to Africa, according to Reuters.

The raids occurred amid opinion polls that showed Scholz in the lead in the chancellor’s race slated later this month, Reuters noted.

The searches have garnered negative attention to the ministry Scholtz runs. However, the official rejected criticism from German lawmakers who spoke out following the raid, according to the wire service. 

BaFin — the financial regulator which reports to Scholtz — has also reportedly been under examination for not recognizing payments from Wirecard, which filed for insolvency last year in what became known as Germany’s largest corporate fraud.

“This is a security risk for Germany,” lawmaker Fabio De Masi said, according to Reuters.

“We need a financial police with criminal expertise. Germany is a paradise for criminals,” he added.

Scholtz, on the campaign trail in Potsdam, said he increased staff at the Finance Intelligence Unit from 165 to 500, and thoroughly investigated to better equip the group, according to Reuters.

He also suggested that he was frustrated by the raids, saying that prosecutors who had inquiries “could have put them in writing.”

The Hill reached out to the Finance Intelligence Unit for comment.