ERIC PIERMONT | AFP | Getty Images

BNP Paribas announced on Wednesday that prosecutors are searching its Frankfurt premises and fully cooperating in a long-running investigation into a multi-billion dollar tax fraud called “Cum-Ex”.

German prosecutors said they have been conducting a search at a banking institution in Frankfurt in connection with Cum-Ex since Tuesday, without naming the bank.

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“As we have done since the investigations began in 2017, we continue to cooperate fully with the public prosecutor’s office in accordance with the legal requirements,” said a spokesman for the bank.

According to the public prosecutor’s office, the investigations also included searches of private homes in three federal states and are focused on 58 suspects who worked or work for the bank.

The measure aims to find relevant e-mails and written correspondence, it said.

Around 130 police officers, prosecutors and tax investigators were involved, it said.

The cum-ex trading system that flourished after the 2008 credit crunch involved rapid trading of company stocks around dividend pay days, blurring stock ownership and allowing multiple parties to claim rebates.

The scandal has engulfed German political and financial circles, with lawmakers claiming it has cost taxpayers billions of euros.

A large number of banks have been raided by prosecutors to investigate possible wrongdoing, including German branches of Barclays, Bank of America and Morgan Stanley which have been raided in recent months.

Government officials say the probe involves around 100 banks across four continents and at least 1,000 suspects. BNP Paribas Frankfurt office searched at Cum-Ex probe