German prosecutors conducted a search of Deutsche Bank’s headquarters in Frankfurt on Tuesday, marking the third such raid this year linked to ongoing investigations tied to the lender’s former acquisition, Postbank. The bank said the inquiry relates to transactions carried out by Postbank between 2008 and 2010, prior to Deutsche Bank’s acquisition of the retail lender from Germany’s postal service, Deutsche Post, in 2010.
The Düsseldorf prosecutor’s office confirmed it was carrying out investigations and had executed search warrants in Frankfurt and other locations but declined to provide further details, citing tax confidentiality regulations. Deutsche Bank described itself as a third party in the matter and has pledged full cooperation with authorities.
The latest probe centers on alleged “cum-cum transactions,” a type of share-swapping scheme reportedly employed by Postbank to reduce or avoid paying dividend withholding tax. Such transactions typically involve temporarily transferring shares from foreign investors to domestic banks around dividend dates, enabling banks to reclaim withholding tax or reduce their tax burden. German authorities have been scrutinizing these arrangements, considering some to be abusive. Unlike the more notorious “cum-ex” trades—where multiple tax refunds were fraudulently claimed on single dividend payments—cum-cum transactions primarily sought to avoid or reduce a singular withholding tax liability.
Deutsche Bank did not begin integrating Postbank into its operations until 2017, a process that proved complex and was only fully completed in 2024. The investigation emerges as Deutsche Bank’s chief executive, Christian Sewing, continues efforts to steer the lender away from a history marred by legal and regulatory scandals. Under Sewing’s leadership since 2018, the bank has reported record profits last year, with shares appreciating roughly threefold over three years.
Previous probes have also cast a shadow on the bank. In January, prosecutors searched Deutsche Bank’s headquarters in connection with a separate money laundering inquiry, just prior to the bank’s annual financial results announcement. Last week, another search targeted a branch on the ground floor of the twin-tower headquarters, focusing on a former employee suspected of embezzling a six-figure amount from clients.
In addition to these investigations, BaFin, Germany’s financial watchdog, recently reported that 54 banks may have engaged in cum-cum transactions, estimating that the related financial liabilities could exceed €4 billion. Deutsche Bank disclosed in its 2025 annual report that it had paid €29 million to settle claims related to cum-ex transactions but did not detail any payments or provisions associated with cum-cum activities.
The ongoing inquiries and raids underscore the persistent challenges Deutsche Bank faces from legacy issues even as it pursues a strategic turnaround.