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.
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.
Global Banking Sector Struggling with Aftermath of Collapses
The banking sector is grappling with the consequences of major banks collapsing or coming close to collapse, leading to emergency mergers. José Manuel Campa, the European Banking Authority (EBA) chairperson, warned that the banking industry remains vulnerable.
BREAKING: French authorities have raided 5 major banks - Societe Generale, BNP Paribas, Natixis, HSBC, and Exane - in a €100 billion fraud investigation.
— Paryte (@Parytecom) March 28, 2023
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