Authorities in Germany have taken the decision to close Canada’s Maple Bank as concerns continue to circle over unpaid tax.
Germany’s financial watchdog, Bafin, took the decision to close the German arm of the investment bank after stating that it was necessary for the bank to place funds aside to meet tax payments.
The decision follows on from events in September last year when prosecutors in the country ordered searches of Maple Bank’s offices in order to investigate alleged money laundering and tax evasion. Allegations had swirled that staff at the bank had claimed back – illegally – more than $100million in tax.
However, there was no reference to this incident when this latest announcement was made by the regulator. Instead, Bafin outlined that Maple Bank was no longer permitted to take payments that were unrelated to repaying debts. It is also no longer permitted to sell assets due to what the Federal Financial Supervisory Authority described as “impending financial over-indebtedness”.
Maple Bank first came to the attention of the mainstream in Germany back in 2008, when it attempted to assist Porsche with a takeover of Volkswagen. However, just one year later the reverse occurred when Volkswagen actually took control of the sports car specialist instead.