[France] Financial prosecutor’s office investigators search SocGen's offices

In France, investigators from the national financial prosecutor's office (PNF) have searched the offices of Societe Generale in Paris and Luxembourg as part of a tax fraud investigation, MSN reports.

Confirming a report by French newspaper Le Monde, a judicial source stated that the homes of four people, primarily bank executives, were also searched, and these people were taken into custody.

Societe Generale reportedly declined to comment.

The raids form part of a preliminary investigation into the French bank led by the prosecution office and opened in January 2024, for "tax fraud laundering", "organised or aggravated tax fraud laundering" and "criminal conspiracy", according to the source.

Authorities are investigating the conditions under which a department of Societe Generale was able to "propose and carry out set-ups for essentially tax purposes for the benefit of major French companies," the source said.

"The actions are likely to have been committed since 2009 in France and abroad, notably in Luxembourg."

The source added that this investigation is separate from the "cum-ex" dividend stripping probe involving SocGen.

In March 2023, French authorities searched the Paris offices of five banks, including Societe Generale, on suspicion of fiscal fraud, as part of a broad European investigation into the avoidance of dividend tax payments.

At the time, the PNF reportedly said that the probe was linked to so-called "cum-ex" dividend stripping, a trading scheme in which banks and investors swiftly trade shares of companies around their dividend payout day.

The practice is intended to blur stock ownership and allow multiple parties to illegally claim tax rebates on dividends.

Source: MSN

(Quotes via original reporting)

In France, investigators from the national financial prosecutor's office (PNF) have searched the offices of Societe Generale in Paris and Luxembourg as part of a tax fraud investigation, MSN reports.

Confirming a report by French newspaper Le Monde, a judicial source stated that the homes of four people, primarily bank executives, were also searched, and these people were taken into custody.

Societe Generale reportedly declined to comment.

The raids form part of a preliminary investigation into the French bank led by the prosecution office and opened in January 2024, for "tax fraud laundering", "organised or aggravated tax fraud laundering" and "criminal conspiracy", according to the source.

Authorities are investigating the conditions under which a department of Societe Generale was able to "propose and carry out set-ups for essentially tax purposes for the benefit of major French companies," the source said.

"The actions are likely to have been committed since 2009 in France and abroad, notably in Luxembourg."

The source added that this investigation is separate from the "cum-ex" dividend stripping probe involving SocGen.

In March 2023, French authorities searched the Paris offices of five banks, including Societe Generale, on suspicion of fiscal fraud, as part of a broad European investigation into the avoidance of dividend tax payments.

At the time, the PNF reportedly said that the probe was linked to so-called "cum-ex" dividend stripping, a trading scheme in which banks and investors swiftly trade shares of companies around their dividend payout day.

The practice is intended to blur stock ownership and allow multiple parties to illegally claim tax rebates on dividends.

Source: MSN

(Quotes via original reporting)