Some countries were on the lookout for dividend stripping, a different form of dividend arbitrage, early on. Norway, for example, rejected ten tax claims with a total value of $4.3 million in 2015 and introduced tighter controls. The US also protected itself in good time. In Germany, however, attempts to legally prohibit CumEx deals failed in 2007 and 2009. Only a letter from the Ministry of Finance in 2012 was more successful. Nevertheless, the bankers, traders, and lawyers behind these tax-driven trades always learn new tricks. While regulations are usually national, financial markets operate globally, which makes it difficult to catch fraudsters.
After the publication of the CumEx Files investigation in 2018, the EU-Parliament adopted a resolution that, among other things, “deplores the fact that the Commissioner in charge of taxation does not recognise the need to extend the existing system for the exchange of information between national tax authorities”. The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) both issued reports in 2020 on CumEx trades, stating that it was not in their authority to stop tax fraud because tax issues do not fall within their scope of work.