What is the exact fine HSBC will pay for dividend tax fraud?

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HSBC to Pay €300 Million Fine for Dividend Tax Fraud in France

HSBC is set to finalise a €300 million fine in a Paris court this week concerning alleged dividend tax fraud. This figure aligns with reports from December and a provision made by the bank in its third-quarter earnings statement. The inquiry relates to dividend withholdings from certain legacy trading activities, as part of a broader investigation into fraudulent schemes.
Fine Amount Finalisation

HSBC will appear in a Paris court this week to finalise a multimillion-euro fine, with reports indicating the amount to be €300 million. This figure was cited by Bloomberg News in December as the proposed settlement to conclude the investigation. The Paris financial prosecutor's office has not officially confirmed this amount, pending the court's validation.
Bank's Financial Provision

The bank itself acknowledged the inquiry in its third-quarter earnings statement, released in October. In that statement, HSBC cited a provision of €300 million set aside for an investigation described as "relating to dividend withholdings of certain legacy trading activities." This financial preparation suggests the bank anticipated a significant settlement related to the matter.
Nature of the Alleged Fraud

The case involves allegations of "CumCum" dividend tax fraud. This scheme typically involves an investor selling shares to another party just before dividend payment day to avoid withholding taxes, and then immediately repurchasing the shares. Both parties involved would then share the illicit proceeds, thereby evading tax obligations on the dividends.
Wider Investigation Context

This specific case against HSBC is part of a larger investigation into massive dividend tax fraud that has been carried out for years across several European countries. These investigations were initially sparked by revelations from a consortium of European news outlets in 2018 concerning similar "Cum-ex" schemes. Banks are suspected of acting as intermediaries in these practices and even charging commissions to investors participating in the fraudulent activities.

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What is the exact fine HSBC will pay for dividend tax fraud?

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