French Authorities Raid 5 Major Banks Over Accusations of Money Laundering and Fiscal Fraud

On Tuesday, French officials conducted raids on five major banks located in and around Paris, including Societe Generale, BNP Paribas, HSBC, Natixis, and BNP’s Exane Bank, over alleged charges of money laundering and fiscal fraud. According to a spokesperson for France’s Financial Prosecutor’s Office (PNF), the preliminary investigation into four French banks and one international bank began at the end of 2021.

Cum-Ex Scheme at the Center of the Investigation; Societe Generale Confirms Involvement in the Raids

Amid the banking crisis plaguing the industry in the United States and abroad, French enforcement authorities on Tuesday raided the offices of several major banks, including HSBC, Societe Generale, BNP Paribas, Natixis, and Exane. The PNF prosecution office noted that the raids were based on suspicion of money laundering and fiscal fraud.

“The ongoing operations, which have required several months of preparation, are being carried out by 16 investigating judges and over 150 investigative agents,” the PNF said in a statement. The raids are tied to an alleged dividend arbitrage scheme known as “cum-cum” or “cum-ex” practices. The practice involves splitting dividends temporarily in order to avoid dividend taxes.

Reportedly, the practice is leveraged by the banks’ wealthy clients to avoid taxation on dividend accounts. The PNF also disclosed that six German prosecutors were involved in the case. The PNF and collaborating prosecutors believe that the alleged fraud has cost governments $108 billion. According to a report by CNBC, Societe Generale was the only financial institution to confirm the office raids. A spokesperson for Societe Generale told The Telegraph that the bank is “part of the investigation.”

Tags in this story

Allegations, Banking Crisis, bnp paribas, cnbc, Cum-Ex Scheme, Dividend Accounts, Dividend Arbitrage, Europe, Exane Bank, financial institution, Financial Prosecutor, fiscal fraud, Fiscal Fraud Charges, Fraud, French Authorities, german prosecutors, Governments, HSBC, international, Investigating Judges, Investigation, major banks, Money Laundering, Natixis, Office Raids, Paris, Paris France, PNF, Prosecutor’s, Raid, Societe Generale, Suspicion, tax evasion, Taxation, wealthy clients

What are your thoughts on the alleged $108 billion fraud by five major banks? Share your thoughts about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Kiev.Victor / Shutterstock.com

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.