23 Mar 2020
Deutsche Bank AG said five former management board members are under investigation for tax evasion, days after the first two bankers were convicted in Germany’s long-running Cum-Ex scandal.
The bank disclosed the information in its annual report Friday without identifying the board members. The bank said it may also face seizures and fines.
Prosecutors in Cologne, who on Wednesday won their first convictions in the Cum-Ex probe, are looking at more than 500 people in the financial industry. The verdict this week found the complicated tax schemes were illegal and may prompt a new wave of charges.
“The investigation is still at an early stage and the scope of the investigation may be broadened,” the lender said. It didn’t say whether it had set aside any provisions to cover any financial penalties related to Cum-Ex.
The controversial transactions — estimated to have cost taxpayers more than 10 billion euros ($10.8 billion) — involved the rapid sale of shares just before a company paid a dividend. This allowed multiple investors to claim a tax refund on the same dividend payment, according to authorities.
In a separate case related to Cum-Ex, a former banker at the now-defunct Maple Financial Group Inc. was released on 6 million euros bail after being arrested in December.
By Karin Matussek and Nicholas Comfort, Bloomberg, 20 March 2020
Read more at Bloomberg
RiskScreen: Eliminating Financial Crime with Smart Technology
Advance your CPD minutes for this content, by signing up and using the CPD WalletFREE CPD Wallet