French and German authorities raided the offices of four French banks and one international bank in Paris over alleged tax fraud and money laundering.
Officials from the French Financial Prosecutor's Office (PNF) said the raids are part of an investigation into money laundering and so-called dividend stripping.
Societe Generale, BNP Paribas, Exane, Natixis, and HSBC have been accused of aggravated tax fraud laundering, while BNP and Exane are also suspected of aggravated tax fraud.
- The banks allegedly used complex legal structures to help wealthy clients avoid tax liabilities for stock dividends.
- The schemes may have allowed clients to evade €100B ($108B) in taxes.
- The investigation, which started in December 2021, has involved 16 judges and over 150 agents, PNF said.
- Prosecutors from the German city of Cologne also participated in the raids.
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- A 2018 investigative report showed that banks, traders, and attorneys had used dividend stripping to avoid as much as $62.9B in taxes across Europe, with the practice costing Germany a projected $36.2B and France $17B.
