By REUTERS
German tax investigators were searching offices at Deutsche Bank’s headquarters in Frankfurt on Wednesday as they investigate alleged tax fraud transactions, Die Welt and other media reported.
The bank confirmed that Duesseldorf prosecutors were at its office in the city, and that the probe related to transactions at its Postbank division between 2008 and 2010.
“Deutsche Bank is being searched as a third party in this matter and we are cooperating fully,” Deutsche Bank said, declining to comment further.
Duesseldorf prosecutors did not immediately respond to a request for comment.
The probe relates to alleged tax fraud transactions known as cum-cum, according to media reports.
The alleged roles of German financial firms in these trades, as well as in related cum-ex deals, are likely to cost the industry around €7 billion ($8 billion), German financial watchdog BaFin said last week, citing a survey.
Such schemes involved trading in stocks of German companies around dividend payout days, which authorities say amounted to tax fraud.
The transactions flourished during the financial crisis, and authorities estimated they stripped state coffers of billions. A years-long crackdown has since sought to claw back the money.
We hope you enjoyed reading this article
If you would like unlimited access to AML Intelligence premium articles, newsletter delivered twice a week, access to our Global Bank Fines and Penalties database, free access to Boardroom Series events and much more, select one of our subscription options and become a subscriber!
