Arab Press

بالشعب و للشعب
Thursday, Jul 10, 2025

French authorities raid banks in massive tax fraud case

French authorities raided five banks on Tuesday as part of an investigation into suspected cases of massive tax fraud and money laundering, prosecutors said.
Some 150 investigators conducted searches in Paris and the financial district La Defense, the financial prosecutor's office (PNF) said in a statement.

The raids follow five preliminary investigations that were opened in December 2021 in connection with suspected money laundering and aggravated suspected tax fraud related to dividend payments, the statement said.

The operation "required several months of preparation", the statement said, and involved 16 investigating magistrates and more than 150 financial investigators.

Prosecutors from Germany, where similar tax frauds came to light in recent years, were also involved in the raids, the statement added.

A spokesman for Societe Generale confirmed to AFP that the French bank was being searched by authorities, but he said he did not know the reason.

French rival BNP Paribas and its Exane unit, financial group Natixis and British banking giant HSBC are the other targets of the raids, according to Le Monde newspaper.



Disappearing dividends
A group of European news outlets published an investigation dubbed the "CumEx-Files" into the tax fraud in 2018.

Its title referred to trading of shares with ("cum" in Latin) and without ("ex") dividends.

The amounts involved are suspected to have reached 140 billion euros ($151 billion) over a period of 20 years, the media group said in 2021.

Tuesday's raids stem from so-called "Cum-Cum" tax fraud.

"The fraud involves a foreign shareholder in a company listed in France temporarily transferring the shares he owns to a French banking institution, around the date the dividend is paid out," the PNF said.

The aim is "to avoid paying the tax applicable to the payment of this dividend," it added.

Banks are suspected of acting as intermediaries in the practice and even charging a commission to the investors taking part.

A German court in December sentenced lawyer Hanno Berger to eight years in prison over the "cum-ex" tax scam, convicting him of three counts of aggravated tax evasion.

The regional court found that the 72-year-old -- believed to be the original mastermind of the scheme -- helped arrange fraudulent transactions at German bank M.M. Warburg between 2007 and 2013 that cost Berlin's treasury 278 million euros.

In addition to the jail time, the court ordered 13.7 million euros ($14.8 million) of personal revenues from the scheme to be confiscated from Berger's accounts.

Berger only partially admitted wrongdoing during the proceedings, insisting that some of the transactions were legal at the time.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Qatar Airways Clears Backlog of Passengers Following Missile Threats
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
×