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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 Financial institution, over alleged expenses of cash laundering and financial fraud. Based on a spokesperson for France’s Monetary Prosecutor’s Workplace (PNF), the preliminary investigation into 4 French banks and one worldwide financial institution started on the finish of 2021.
Cum-Ex Scheme on the Heart of the Investigation; Societe Generale Confirms Involvement within the Raids
Amid the banking disaster plaguing the trade in the USA 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 financial fraud.
“The continuing operations, which have required a number of months of preparation, are being carried out by 16 investigating judges and over 150 investigative brokers,” the PNF stated in a press release. 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 as a way to keep away from dividend taxes.
Reportedly, the follow is leveraged by the banks’ rich shoppers 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. Based on a report by CNBC, Societe Generale was the one monetary establishment to substantiate the workplace raids. A spokesperson for Societe Generale advised The Telegraph that the financial institution is “a part of the investigation.”
What are your ideas on the alleged $108 billion fraud by 5 main banks? Share your ideas about this topic within the feedback part beneath.
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