Financial Crime World

French Authorities Launch Wide-Ranging Investigation into Alleged Fiscal Fraud at Societe Generale, BNP Paribas, and Other Major Banks

Français : Rubrique: Fraude fiscale supposée à Societe Generale, BNP Paribas et autres grands banques : enquête large échelle menée par les autorités françaises _, Italian : Rubrica: Frode fiscale presuntamente a Societe Generale, BNP Paribas e altre grandi banche: vasta indagine condotta dalle autorità francesi _, English: Article: French Authorities Launch Wide-Ranging Investigation into Alleged Fiscal Fraud at Societe Generale, BNP Paribas, and Other Major Banks

Investigation into Suspected Fiscal Fraud

French financial prosecutors are leading a broad investigation into suspected fiscal fraud at Societe Generale, BNP Paribas, HSBC, Exane, and Natixis, in coordination with authorities in Germany and other European countries.

  • Five French banks targeted in the raids
  • Societe Generale and BNP Paribas confirm office searches
  • Exane and Natixis also targeted
  • Suspected ‘cum-ex’ dividend stripping scheme

Suspected ‘Cum-Ex’ Dividend Stripping Scheme

The focus of the investigation surrounds the controversial “cum-ex” dividend stripping scheme. This practice allows multiple parties to illegally claim tax rebates on dividends.

  • Illegal dividend rebates
  • Complex and intricate scheme
  • Controversial ‘cum-ex’ dividend stripping scheme

Precedents and Consequences

The consequences of such fraudulent activity have been severe, including a prison sentence for a tax lawyer in Germany.

  • German tax lawyer sentenced to 8 years
  • €10 billion ($10.7bn) post-war fraud
  • Convictions of British bankers

Complex and Lengthy Investigation

The investigation, led by the National Financial Prosecutor’s Office (PNF), started in 2014 and has been a complex and lengthy process requiring several months of preparation.

  • Complex and lengthy process
  • Six German prosecutors assisting efforts
  • Collective compensation claim exceeding $1bn

Ongoing Global Financial Turmoil

Amid recent financial instability, with the collapses of Silicon Valley Bank, Signature Bank in the US, and the government-orchestrated takeover of Credit Suisse by UBS, the fiscal fraud investigations continue.

  • Global banking landscape shake
  • High-profile cases amid financial instability
  • Active pursuit to hold institutions accountable