Deutsche Bank Under Scrutiny: Alleged Tax Fraud Investigation at Frankfurt HQ

German tax investigators searched Deutsche Bank's Frankfurt headquarters regarding alleged tax fraud linked to transactions at its Postbank division from 2008-2010. Known as cum-cum trades, these dealings reportedly cost the German financial sector around €7 billion. A historical crackdown aims to reclaim tax losses amid the financial crisis.

On Wednesday, Deutsche Bank's headquarters in Frankfurt became the focal point of a tax fraud investigation as German investigators launched a search operation. The scrutiny revolves around suspicious transactions at the bank's Postbank division between 2008 and 2010, according to reports from Die Welt and other media outlets.

The bank acknowledged that the Duesseldorf prosecutors were at their office as part of the inquiry into what are known as cum-cum transactions. These transactions were previously highlighted for severely impacting the German financial landscape, potentially costing the industry approximately €7 billion, as noted by German financial watchdog BaFin.

BaFin's survey detailed the trades' timing shortly before dividend payouts, which exploited tax system loopholes, especially during the financial crisis. The German authorities have since extended relentless efforts to recoup the substantial losses to the state coffers caused by this intricate tax evasion scheme.