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

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

On Tuesday, French officers performed raids on 5 main banks situated in and round Paris, together with Societe Generale, BNP Paribas, HSBC, Natixis, and BNP’s Exane Bank, over alleged costs of cash laundering and monetary fraud. According to a spokesperson for France’s Financial Prosecutor’s Office (PNF), the preliminary investigation into 4 French banks and one worldwide financial institution started on the finish of 2021.

Cum-Ex Scheme on the Center of the Investigation; Societe Generale Confirms Involvement within the Raids

Amid the banking crisis plaguing the trade within the United States and overseas, French enforcement authorities on Tuesday raided the offices of a number of main banks, together with HSBC, Societe Generale, BNP Paribas, Natixis, and Exane. The PNF prosecution workplace famous that the raids had been based mostly on suspicion of cash laundering and monetary 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 mentioned in a press release. The raids are tied to an alleged dividend arbitrage scheme often called “cum-cum” or “cum-ex” practices. The observe includes splitting dividends quickly as a way to keep away from dividend taxes.

Reportedly, the observe is leveraged by the banks’ rich shoppers to keep away from taxation on dividend accounts. The PNF additionally disclosed that six German prosecutors had been concerned within the case. The PNF and collaborating prosecutors imagine that the alleged fraud has value governments $108 billion. According to a report by CNBC, Societe Generale was the one monetary establishment to verify the workplace raids. A spokesperson for Societe Generale told The Telegraph that the financial institution is “part of the investigation.”

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