German prosecutors searched Deutsche Bank’s Frankfurt headquarters on Wednesday as part of an investigation into suspected tax avoidance linked to transactions carried out by Postbank before its acquisition by Germany’s biggest lender.

Deutsche Bank confirmed the search, saying it related to Postbank transactions between 2008 and 2010 and that it was being treated as a third party in the investigation. "According to our information, this relates to transactions by Postbank between 2008 and 2010," the bank said. "Deutsche Bank is being searched as a third party in this matter and we are co-operating fully."

According to the Financial Times, the Düsseldorf prosecutor's office carried out searches in Frankfurt and other locations but declined to provide further details, citing tax secrecy rules. People familiar with the matter told the publication the investigation concerns alleged "cum-cum" share-swapping transactions designed to reduce or avoid dividend withholding tax before Deutsche Bank acquired Postbank from Deutsche Post in 2010.

Cum-cum transactions involved foreign investors temporarily transferring shares in German companies to domestic banks around dividend payment dates, enabling tax to be reclaimed or avoided. German authorities have challenged such arrangements for years, distinguishing them from the separate cum-ex schemes that generated multiple tax refunds on a single tax payment. Deutsche Bank disclosed in its 2025 annual report that it paid €29 million to settle tax claims linked to cum-ex transactions but made no comparable disclosure relating to cum-cum cases.

According to the Financial Times, the search marks the third time prosecutors have raided Deutsche Bank's headquarters this year, adding to legal issues that have continued during chief executive Christian Sewing's efforts to improve the lender's performance. The bank reported record profits last year and its shares have roughly tripled over the past three years.

According to Germany's financial regulator BaFin, a recent survey found 54 banks may have participated in cum-cum transactions, with the potential financial impact exceeding €4 billion. German authorities have increased scrutiny of historical dividend tax trading schemes following years of investigations into suspected tax fraud across the banking sector.

The latest search follows a raid last week linked to an alleged customer embezzlement case involving a former employee and another search in January connected to a money laundering investigation examining the bank's handling of transactions involving companies linked to a Russian oligarch between 2013 and 2018.

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