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National Bank of Canada: No connection with frozen Maple Bank

Staff writer |
National Bank of Canada denies any connection with alleged activities of Maple Bank that BaFin says violated German tax laws.

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On February 6, 2016 BaFin, the German Federal Financial Supervisory Authority, placed a moratorium on the business activities of Maple Bank GmbH, with the result that Maple Bank is no longer able to undertake its normal business activities.

These events result from ongoing investigations launched by German authorities in September, 2015 focusing on selected trading activities by Maple Bank, and certain of its current and former employees, during taxation years 2006-2010.

The German authorities have alleged that these trading activities violated German tax laws.

None of National Bank of Canada and its employees were involved in these trading activities, nor to their knowledge is National Bank of Canada or any of their employees the subject of these investigations.

National Bank of Canada owns approximately 24.9% of Maple Financial Group Inc., the parent of Maple Bank GmbH.

National Bank will take a full reserve of its current carrying value, being approximately $165 million, in respect of the first fiscal quarter ended January 31, 2016. This will reduce the bank’s CET 1 capital ratio by 13 basis points.

National Bank has advised the German authorities that if it is determined portions of dividends received from Maple Financial Group Inc. could be reasonably attributable to tax fraud by Maple Bank, arrangements will be made to repay those amounts to the relevant authority.

If any repayments are required they are not expected to be material to National Bank.

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