British banking group Barclays is under the German regulator’s lens over Cum-Ex tax trades, Bloomberg has reported. 

As part of the investigation, Barclays’ offices in Frankfurt were raided by the authority as it tightens the grip over foreign banks that could be potentially involved. 

The homes of two suspects were also raided during the search operation to find evidence related to Cum-Ex and related trades. It involved nearly 70 police and tax personnel.

A Barclays spokesperson said that Cologne prosecutors conducted the search, which was “related to an investigation into historic Cum-Ex trading activity, and we are continuing to cooperate with the authorities in Germany.”

The news comes shortly after Bank of America Corp.’s Merrill Lynch offices were hit. 

Cum-Ex, which is derived from Latin meaning “with without”, was a trading strategy that cost the German government $11.2bn. 

As per the report, the strategy exploited Germany’s tax laws through which several investors claimed refunds of a tax that was paid only once. 

Germany banned Cum-Ex in 2012. 

Search warrants against an audit firm, which is not being probed, were also executed, the Cologne prosecutor said. 

The news was confirmed by Ernst & Young, which was asked to furnish information on the services it provided. 

Ernst & Young was asked to do the same last week as well when Merrill Lynch was searched. 

The audit firm said it was cooperating with the authorities.