German prosecutors conducted a third search this year at Deutsche Bank’s headquarters in Frankfurt as part of an ongoing investigation into alleged tax-related transactions involving Postbank, a retail lender acquired by Deutsche Bank in 2010. Authorities focused on share-swapping deals carried out between 2008 and 2010, commonly known as “cum-cum transactions,” which are structured to reduce or avoid dividend withholding tax.
The Düsseldorf prosecutor’s office confirmed the investigation and searches in Frankfurt and other locations but declined to provide additional details, citing tax secrecy regulations. Deutsche Bank stated it was being treated as a third party in the matter and emphasized full cooperation with the authorities.
Cum-cum transactions typically involve foreign investors temporarily transferring shares in German companies to domestic banks around dividend payout dates. This arrangement allows investors to reclaim or avoid withholding tax. Although these transactions differ from the better-known cum-ex trades—where multiple refunds were claimed on a single dividend tax payment—German authorities have scrutinized cum-cum deals for potentially abusive tax practices.
Deutsche Bank has previously disclosed a €29 million settlement in 2025 related to cum-ex tax claims but has not publicly reported payments or provisions linked to cum-cum activities. The integration of Postbank into Deutsche Bank, which began in 2017 and was completed in 2024, complicates the bank’s involvement since the implicated transactions occurred before the acquisition.
The investigation into cum-cum deals adds to a series of legal challenges and legacy scandals facing Deutsche Bank, despite the lender’s reported record profits last year and a tripling of its share price over the past three years under Chief Executive Christian Sewing’s leadership.
This latest raid follows a separate search of a Deutsche Bank branch within the dual-tower headquarters last week, related to an alleged embezzlement case involving a former employee accused of misappropriating a six-figure sum from customers. Earlier in January, prosecutors also searched the bank’s headquarters as part of an unrelated money-laundering probe.
Financial regulator BaFin recently reported that 54 banks may have participated in cum-cum transactions, estimating the financial impact on the institutions could exceed €4 billion. The ongoing investigations underscore the continued regulatory scrutiny facing Deutsche Bank amid its efforts to overcome past controversies.