The public prosecutor’s office has intensified its investigation into the group’s possible involvement in the cum-ex business.
(Photo: dpa)
Frankfurt The financial regulator Bafin is taking action against the Deutsche Börse subsidiary Clearstream due to deficiencies in the management of tax risks. Its subsidiary Clearstream Banking AG Frankfurt must hold additional equity and eliminate deficiencies identified during a special audit, as Bafin announced on Thursday evening.
According to financial circles, the reason for the special audit was the investigation by the Cologne public prosecutor against Clearstream because of so-called cum-ex transactions. Banks and investors have cheated the state out of billions for years by having capital gains tax that was only paid once reimbursed several times in the case of dividend transactions.
The public prosecutor’s office is therefore also investigating against Deutsche Börse and searched the group in 2019. Among other things, it is investigating the suspicion that Clearstream employees have advised banks on share transactions at the expense of taxpayers. An expert opinion commissioned by the Hessian stock exchange supervisory authority also does not cast a good light on the role of the German stock exchange in cum-ex transactions.
The Dax group, on the other hand, sees itself relieved by internal investigations and various other reports. He therefore does not assume that the company will be fined for cum-ex transactions.
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The Bafin’s special audit was not about the cum-ex transactions, which are the focus of the investigation and date back several years. After all, the Bafin is not a tax authority. It only checked whether Clearstream Banking currently meets the regulatory risk management requirements.
Deutsche Börse: Weaknesses have already been eliminated to some extent
The special test took place at the beginning of 2021, Deutsche Börse said. It was about “compliance with the minimum requirements for risk management”. “Processes for compliance with tax regulations applicable at the time of the audit were checked.”
Immediately after the audit, Clearstream Banking AG Frankfurt initiated measures to strengthen risk management, “so that the internal security measures have already been significantly strengthened and the weaknesses identified at the time of the audit have already been partially remedied,” explained Deutsche Börse.
“In particular, corresponding capital surcharges to further strengthen risk management have already been anticipated by the institute.”
The Bafin explained that Clearstream must ensure proper business organization and regularly inform the financial supervisory authority and the Deutsche Bundesbank “on the progress of remedying deficiencies”. Clearstream is responsible for ensuring that securities are held in custody after trading and settlement.
The public prosecutor’s office intensified its investigation into the role of Germany’s largest stock exchange operator in cum-ex transactions in the spring.
“The group of suspects in the ongoing investigations by the Cologne public prosecutor’s office has expanded in several stages – most recently a few days ago – and, to our knowledge, also includes former and current employees and board members of Deutsche Börse Group companies,” said CEO Theodor Weimer at the Group’s annual general meeting in May.
More: Deutsche Börse and the business that was not allowed to exist.