HSBC to pay $300m in French tax probe settlement
HSBC Holdings is preparing to pay around $300 million to settle a French criminal investigation into its alleged involvement in the “Cum-Cum” tax scandal.
Cum-Cum trades involve foreign investors temporarily transferring shares in French companies to local tax-exempt entities—typically domestic banks—around dividend payment dates to reduce or avoid withholding tax, News.Az reports, citing Reuters.
HSBC previously disclosed in October that it had set aside $300 million in provisions related to the probe.
The proposed settlement with prosecutors from the Parquet National Financier (PNF) is expected to be reviewed by a Paris judge in the coming weeks.
HSBC declined to comment, while the PNF has not yet responded to Reuters’ request for details.
In September, Crédit Agricole’s investment banking arm agreed to pay €88.2 million to settle a similar dividend tax case.
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