HSBC Settles Dividend Tax Probe in France

London-based HSBC has paid French authorities to settle an investigation into alleged dividend tax payment fraud that dates back over a decade.

HSBC has agreed to pay 267.5 million euros ($312.3 million) to the French treasury to settle an investigation into alleged dividend tax payment fraud from 2014 to 2019, according to a statement (translated from French) from the country’s National Financial Prosecutor (PNF). The bank’s settlement is not an admission of guilt.

«This agreement is part of a preliminary investigation into trading schemes involving intragroup dividend arbitrage transactions involving the Paris branch of HSBC Bank plc,» PNF said.

In a separate statement, HSBC said it was «pleased to have resolved this matter which relates to certain historical trading which ended in 2019». It added that the settlement recognizes the bank’s cooperation with the investigation and corrective measures taken, though it did not specify how its financial results might be affected.