Deutsche Bank Investigation: Prosecutors Raid Frankfurt Headquarters Over Tax Schemes

Deutsche Bank AG's headquarters in Frankfurt became the subject of prosecutorial raids related to the activities of its subsidiary, Postbank. According to Bloomberg, the operation is part of an investigation by the Central Office for Combating Economic and Financial Crimes.

The authorities' focus is on transactions carried out between 2008 and 2010. These relate to so-called "Cum-Cum" deals. Under this mechanism, shareholders transfer shares for a short period to investors outside Germany in order to circumvent the payment of dividend tax.

Deutsche Bank acquired Postbank in 2010, but the integration process of the two institutions took more than a decade. Bank representatives confirmed that they are actively cooperating with law enforcement agencies and emphasized that they comply with all regulatory and tax requirements.

According to the German newspaper Welt, Marcus Chromik, Chief Risk Officer at Deutsche Bank, who worked at Postbank until 2009, is among the employees under investigation. It is important to note that the investigation itself does not equate to an official indictment, and under German law, the presumption of innocence applies until a final judicial decision is reached.

This is yet another investigation against the lender, as prosecutors in Cologne are already conducting a separate proceeding regarding similar financial maneuvers by the bank.