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French Authorities Raid 5 Banks in €100 Billion Fraud Investigation

French authorities investigate potential €100 billion fiscal fraud and money laundering cases, raiding five major banks in Paris.

HSBC building
HSBC building

Major Banks Targeted in French Fraud Probe

The French capital witnessed a series of raids on major banks as authorities investigated potential fiscal fraud and money laundering cases. The fraud may have cost the French and German governments over €100 billion ($108 billion).

Four French and One International Bank Raided

French and German prosecutors conducted searches in and around Paris, targeting Société Générale, BNP Paribas, Exane, Natixis, and HSBC. France's Financial Prosecutor's Office (PNF) spokesperson confirmed the raids, as Deutsche Welle (DW) reported on March 28.

Investigations Linked to 'Cum/Cum' Tax Evasion Practices

The PNF stated that the investigations were connected to the legally questionable 'cum/cum' practice, in which banks create complex legal structures to help wealthy clients evade dividend taxation.

Banks Suspected of Aggravated Tax Fraud Laundering

Société Générale, BNP Paribas, Exane, Natixis, and HSBC are suspected of aggravated tax fraud laundering. BNP and Exane are also facing suspicions of aggravated tax fraud. The related investigations began in December 2021.

BNP PARIBAS building
BNP PARIBAS building

150+ Investigation Agents Involved in Ongoing Operations

In a public statement, the PNF emphasized that the ongoing operations required several months of preparation and involved 16 investigating judges and over 150 investigation agents.

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