BNP Paribas, HSBC and SocGen raided over ‘tax fraud’ allegations

Several major banks – including BNP Paribas, Société Générale and HSBC – have been raided by French prosecutors in Paris over alleged tax evasion linked to dividend payments.

According to a report by the Financial Times (FT), the move marks the largest raid ever carried out by French financial authorities, with investigators telling the newspaper that it had deployed 150 people to sort through documents and emails at the banks' offices in the capital.

The raids, which also impacted French corporate and investment bank Natixis and BNP-owned brokerage Exane, relate to five existing probes into money laundering and fiscal fraud charges which were launched two years ago by the French financial prosecutor’s office.

The report said that the investigations are tied to “cum-cum” trades or transactions that aim to benefit from tax advantages linked to the payment of dividends.

In a separate move, France’s tax regulators are also seeking to issue several penalties worth over €1 billion, a source close to the matter told the publication.

BNP Paribas confirmed that a search by the French National Financial Prosecutor's Office in several banking institutions is being conducted, but told FStech that it is unable to comment further on an ongoing investigation.

FStech has approached Société Générale, Natixis and HSBC for further comment.

    Share Story:

Recent Stories


The human firewall: Activating employees to safeguard financial data
As financial services increasingly embrace SaaS and cloud-based technologies, they face emerging threats to safeguard sensitive customer data. While comprehensive IT security measures are essential, the active involvement of employees across organisations is pivotal in ensuring the protection of sensitive data.

Building a secure financial future for instant payments: The convergence of ISO 20022 and fraud detection
The financial landscape is rapidly evolving its approach to real-time transactions under the ISO 20022 standard, and financial institutions must take note. With examples such as the accelerated adoption of SEPA Instant Credit Transfers in Europe and proposed New Payment Architecture (NPA) programme in the UK, the need for swift and effective fraud detection is more crucial than ever.

Data Streaming and Consumer Duty: Transforming customer experience in banking
Introduced at the end of July, the Consumer Duty is a game-changing new set of rules and guidance for financial services institutions in the UK, and companies must look to modernise their systems in adherence with it in mind to create the best customer experience possible.

From insight to action: Empowering financial institutions through advanced technology and collaborative information sharing
The use of Information sharing in enhancing financial crime prevention has been universally agreed as being beneficial. However no-one has been able to agree on how information can be shared safely without breaching data protection laws or having the right systems to facilitate this, Information sharing has re-emerged as a major consideration for financial institutions (FIs) ahead of the Economic Crime and Corporate Transparency Bill being made into law in the UK.