- Cologne court said to issue fines totalling 30 million euros
- Fines said to resolve Cologne cum-ex and Luxembourg cases
UniCredit SpA’s Hypovereinsbank unit will be fined more than 30 million euros ($33 million) by a German court as part of an agreement to resolve a dispute over refunds on dividends and customer accounts in Luxembourg, people familiar with the case said.
The lender won’t challenge two court orders levying the fines in a probe by Cologne prosecutors, according to the people, who declined to be identified as the information is private. A 9.8 million-euro fine covers so-called cum-ex deals on contested tax refunds for dividend payments. The second fine of 19.1 million euros concerns allegations a Luxembourg unit assisted German customers who used offshore companies to hide income.
Prosecutors throughout Germany have been targeting banks in tax-related cases. In addition to Cologne, authorities in Munich and Frankfurt are reviewing various lenders on cum-ex trades. Officials are also using customer-account data they bought from whistle-blowers to identify Germans hiding assets to evade taxed and whether banks are aiding the schemes.
The first order, issued by a Cologne court, was sent to Hypovereinsbank, according to the people. The second one will be issued shortly, they said.
Cologne prosecutor spokesman Daniel Vollmert and UniCredit spokeswoman Margret Riedlsperger declined to comment.
Sueddeutsche Zeitung reported the agreement earlier today.