On Tuesday, French officers carried out raids on 5 main banks positioned in and round Paris, together with Societe Generale, BNP Paribas, HSBC, Natixis, and BNP’s Exane Bank, over alleged prices of cash laundering and fiscal 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 disaster plaguing the trade within the United States and overseas, French enforcement authorities on Tuesday raided the workplaces of a number of main banks, together with HSBC, Societe Generale, BNP Paribas, Natixis, and Exane. The PNF prosecution workplace famous that the raids have been primarily based on suspicion of cash laundering and fiscal fraud.
(*5*) the PNF mentioned in an announcement. The raids are tied to an alleged dividend arbitrage scheme generally known as “cum-cum” or “cum-ex” practices. The follow includes splitting dividends quickly with the intention to keep away from dividend taxes.
Reportedly, the follow is leveraged by the banks’ rich purchasers to keep away from taxation on dividend accounts. The PNF additionally disclosed that six German prosecutors have 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 substantiate the workplace raids. A spokesperson for Societe Generale informed The Telegraph that the financial institution is “part of the investigation.”
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