United Kingdom regulator Georgina Philippou said at the time: "This case stands out for the seriousness and duration of the breaches by Deutsche Bank - something reflected in the size of today's fine".
The lender may have helped clients in setting up offshore companies in tax havens.
"Even in the most egregious cases, banks are often only required to pay a monetary penalty for engaging in criminal activity, which is merely the cost of doing business", said Jimmy Gurule, a former undersecretary for enforcement for the U.S. Treasury Department.
The activities at Deutsche Bank AG that prompted a police raid on its headquarters took place as recently as this year, according to authorities.
Deutsche Bank confirmed the search and said "the investigation has to do with the Panama Papers case".
It is believed the probe involves the so-called Panama Papers, leaked documents pertaining to over 200,000 offshore dealings.
Met Éireann issues orange alerts ahead of Storm Diana
Storm Diana is expected to move away during Wednesday evening, although showers are likely to persist into Thursday, November 29. By tonight, the next band of rain appears in the southwest and this is linked to Storm Diana.
Deutsche Bank shares were down more than 3 per cent by midday on Thursday and have lost nearly half their value this year.
Investigators are looking into two staff members, aged 46 and 50, as well as possible suspects who have yet to be identified.
It was fined more than $797 million by USA and United Kingdom authorities in January 2017 for allowing customers to transfer more than $13 billion out of Russian Federation in what regulators said was "highly suggestive of financial crime". "As far as we are concerned, we have already provided the authorities with all the relevant information regarding Panama Papers".
German prosecutors found no evidence of criminal wrongdoing, and the bank's top-level executives were deemed not to have been involved in the scandal.
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.
Weaknesses in Deutsche Bank's controls that aim to prevent money laundering have caught the attention of regulators on both sides of the Atlantic. Some of the money reportedly went through Deutsche Bank and ended up in major capitals like London, according to The Organized Crime and Corruption Reporting Project.