HSBC to pay €267.5 million fine in French tax fraud settlement
HSBC will pay €267.5 million to settle French claims of dividend tax fraud related to the 'CumCum' scheme.Summary
HSBC has agreed to pay a €267.5 million fine to resolve French allegations of dividend tax fraud, avoiding further prosecution. The settlement, approved by a Paris court, is part of a broader investigation into multiple major banks concerning the “CumCum” fraud, a scheme where investors sell shares before dividend payments to evade taxes and repurchase them immediately. HSBC acknowledged the presented facts and welcomed the deal, citing its cooperation and corrective actions.
This case originated from a large-scale fraud uncovered by a European news consortium in 2018, leading to investigations into six banks, including BNP Paribas, Societe Generale, and Natixis, starting in December 2021. Credit Agricole previously settled for €88 million in September.
The “CumCum” fraud is similar to the “Cum-ex” scheme exposed in Germany, where a lawyer was sentenced to eight years in prison for masterminding the operation, which reportedly siphoned off €140 billion over two decades.
(Source：Thesun)