German regulator BaFin has raided the offices of Deutsche Bank on suspicion of the fraudulent advertising of sustainable investment funds at its DWS unit.

The raid follows allegations, by a former DWS manager, of ‘greenwashing,’ was carried out by BaFin and a branch of the German police, BKA.

Greenwashing has been a growing concern amongst regulars globally as financial institutions have attempted to tap into the huge interest in more sustainable and ESG-focussed investments. The lack of a single unified taxonomy has not helped, but in some cases deliberate misrepresentation has been alleged over products and results.

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