(9 January 2026 – France) HSBC has agreed to pay €267.5m to the French treasury to settle an investigation into alleged dividend tax payment fraud, according to France’s financial prosecutor.
The settlement, approved by a Paris court, brings to a close a probe covering practices between 2014 and 2019.
The investigation formed part of a wider inquiry into dividend tax trading schemes that has implicated multiple banks in France and prompted similar probes across Europe. In HSBC’s case, prosecutors examined intra-group dividend arbitrage transactions, which they alleged could amount to tax fraud. The settlement does not constitute an admission of guilt.
HSBC said it was “pleased to have resolved this matter which relates to certain historical trading which ended in 2019.” The bank added: “The settlement with the (prosecution) recognises the Bank’s co-operation with the investigation, as well as the corrective measures it took to address the historic issues.”
The bank did not disclose whether it had set aside provisions for the payment or the potential impact on its financial results.
The broader investigation originated from scrutiny of dividend stripping strategies commonly referred to as “cum-cum” and “cum-ex”, where shares are traded rapidly around dividend dates to obscure ownership and enable multiple tax rebate claims. While the prosecutor’s statement did not explicitly reference these practices in HSBC’s case, similar schemes have led to major prosecutions elsewhere in Europe, including Germany.