German investigation into ‘dividends stripping’ widens to include arrest of former magic circle lawyer

29th November 2019 Business Crime

The German authorities’ investigation into the multi-billion fraudulent abuse of tax reimbursement schemes, which is becoming known as the CumEx scandal or ‘dividends stripping’, continues to gather pace with the arrest of a former magic circle lawyer in Germany.

The arrest is particularly concerning to legal professionals because at present it is unclear whether the lawyer was acting with the full permission of his firm and therefore whether the investigation will involve wider criticism of the firm’s policies and processes, or whether the lawyer had ‘gone rogue’.

Separately the German authorities recently raided the bank ABN Amro NV’s offices throughout the country. The searches involved hundreds of German officers and reportedly included several private homes as well.

These developments continue to gain coverage in the specialist press but for some reason have to date gained little coverage in the mainstream, despite the loss to taxpayers thought to be in excess of €60bn across Europe. 

The authors of this blog recently took a look at a European consultation involving the CumEx scandal, here.

Lee Adams, Head of London Business Crime and Regulation and Amy Shaffron, Senior Associate at JMW can be contacted via Lee.Adams@jmw.co.uk and Amy.Shaffron@jmw.co.uk.

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Lee Adams is a Head of London located in London in our Business Crime & Regulation department

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