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.

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