$11 Billion German Tax Scandal Probed by EU Bank Watchdog

A day after the first Cum-Ex trial opened in Germany, Europe’s banking regulator said it is investigating the controversial tax transactions following requests from members of the European Parliament.

The authority will review whether “these schemes” are linked to money laundering and whether there are governance issues within banks, Jose Manuel Campa, head of the European Banking Authority, said Sept. 5 at a European Parliament hearing in Brussels. The London-based regulator is coordinating its efforts with the European Union’s markets watchdog ESMA.

“We’re evaluating whether there is any anti-money laundering evidence and whether banks had any deficiencies in proper risk-management ...