- The raid happened in Frankfurt and comprised over 100 investigators.
- As of today’s inquiry, Deutsche is suspected of dividend stripping.
On Tuesday, Deutsche Bank said that it is cooperating with authorities investigating a tax fraud case that dates back at least ten years. The biggest German bank is only one of several institutions embroiled in the “cum-ex” scam, which involves billions of euros.
Though Deutsche wasn’t formally identified, the public prosecutor’s office in Cologne stated that a raid was performed on a bank and auditing business. The raid happened in Frankfurt and comprised over 100 investigators, and 10 workers had their private dwellings investigated.
Not the First Time
Since taking over in 2018, CEO Christian Sewing has been working to restore the company’s good name. However, this is not the first time German authorities have looked into Deutsche.
When it was discovered that the bank had misled its lenders regarding the environmental friendliness of some investment options, federal agents carried out the second round of investigations early this year. The bank engaged in “greenwashing,” a technique in which it stated that certain firms were more sustainable than they really were.
As of today’s inquiry, Deutsche is suspected of dividend stripping. When dividends are paid out, investors and banks often trade shares of the company swiftly, blurring the ownership line. Additionally, it facilitates many individuals’ fraudulently claiming dividend tax credits.
However, Deutsche isn’t the only company with financial difficulties. According to the prosecution, the case covers four continents and involves more than a hundred banks and at least a thousand people. According to Deutsche representatives, the company has been helping authorities since 2017. They’ll keep doing it until the investigation is over.