FRANKFURT: Berenberg Bank, one of the oldest and most venerable institutions in private banking in Germany, is finding its squeaky clean reputation coming under scrutiny in the wake of the Panama Papers global tax evasion scandal.
Berenberg may not be a household name like some of its bigger peers, but the upscale Hamburg-based bank has cultivated an impeccable image, the epitome of courtesy and discretion for both customers and employees alike.
And it had remained unscathed by the multiple scandals that have tarnished Germany's major lenders such as Deutsche Bank and Commerzbank in recent years.
But its pristine reputation has come under wider public scrutiny after finding itself explicitly named several times in the Panama Papers.
"Germany's oldest bank is under pressure: dubious customers from all over the world and formerly good relations with Mossack Fonseca are tarnishing the image of the upscale Hanseatic bank," wrote the Sueddeutsche Zeitung.
The Panama Papers are a trove of about 11.5 million leaked documents of the Panamanian law firm Mossack Fonseca that reveal the large-scale use by firms and wealthy individuals of offshore shell companies that enables the concealing of assets from tax authorities.
According to the International Consortium of Investigative Journalists (ICIJ) which coordinated the release of the tax evasion data, Berenberg's Luxembourg and Swiss subsidiaries were behind around a dozen shell companies and 76 offshore accounts domiciled in Panama.
The ICIJ also accused Berenberg of doing business with dubious customers reportedly linked to Hezbollah in Libya or even Colombian drug traffickers.
Berenberg has admitted "like many others" to managing offshore accounts for clients -- which in itself is not illegal -- and insisted it had done so "in line with the law".
Shell companies are also not illegal in themselves, and the number was just a tiny fraction of the some 1,200 in all attributed to 28 German banks.
Nevertheless, the suggestion that Berenberg might be involved in potentially dodgy dealings has raised eyebrows in the German press.
Part of the bank's excellent reputation was that it always appeared to be different from other institutions, noted the Sueddeutsche Zeitung. But that was now being questioned.
"One of the banks that stands out particularly is -- to my great surprise -- Berenberg," Georg Mascolo, one of the team of international journalists behind the revelations.
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