French Financial Institutions Investigated for Money Laundering and Tax Evasion


It was reported on Tuesday that five major French banks were raided by law enforcement agencies in connection with the investigation into money laundering and tax evasion. According to the France Financial Prosecutor’s office, Societe Generale, BNP Paribas, HSBC, Natixis and Exane Bank were the target of the raids. Additionally, six German prosecutors were also involved in the case.

Cum-Ex Scheme at the Core of the Investigation; Societe Generale Confirms Involvement In the Raids

As the banking industry faces significant challenges in the US and in Europe, French authorities have raided five major banks on Tuesday. The raids included Societe Generale, BNP Paribas, Natixis, and Exane. The Financial Prosecutor’s Office (PNF) noted that the raids were motivated by suspicion of money laundering and tax 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 issued a statement. The The raids are tied with a dividend arbitrage scheme, known as “cum-cum” Oder “cum-ex” practices. The Practice involves temporarily splitting dividends to avoid paying dividend taxes

Reportedly, the practice is utilized by the banks’ wealthy clients to escape taxation on dividend accounts. The PNF also revealed that six German Prosecutors were also involved in the case. The PNF and the other cooperating prosecutors believe that governments have been harmed by this fraud. According According to CNBC’s report, Societe Generale was the only financial institution to confirm the office raids. A spokesperson for Societe Generale Submitted The Telegraph The bank is “part of the investigation.”

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What do you think about the $108 billion fraud committed by five banks? Share your thoughts in the comment section below.

Jamie Redman

Jamie Redman The News Lead At News A financial tech journalist who lives in Florida. Redman Since 2011, has been an active participant in the cryptocurrency community. He Passionate about BitcoinOpen-source code, decentralized applications, and open-source software. Since September 2015, Redman More than 6,000 articles have been written by him. News Information about the new disruptive protocols.

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