HSBC has agreed to pay just over €300mn in fines and back taxes in France to settle a dividend fraud investigation as financial prosecutors pursue banks over “cum-cum” trades.
HSBC will pay €267mn to French tax authorities as a penalty part of the deal, the financial prosecutor’s office said. It follows an investigation into how the bank handled some dividend trades between 2014 and 2019 and whether some operations helped it avoid tax. The bank had already repaid €35mn in due interest payments and other sanctions, prosecutors added.
“The settlement . . . recognises the bank’s co-operation with the investigation, as well as the corrective measures it took to address the historic issues,” HSBC said.
