HSBC is reportedly set to pay 268 million euros (around $312.9 million) to French tax authorities to resolve allegations of tax evasion.
French prosecutors have claimed that from 2014 to 2019, the bank’s French division participated in intra-group transactions designed to exploit tax exemptions, which they categorize as “aggravated tax evasion,” as noted by the Wall Street Journal on January 8th.
In a statement, HSBC mentioned its cooperation with the investigation and the steps it has taken to rectify past issues, emphasizing a continued focus on customer service.
The Financial Times reported that the total payment includes penalties and back taxes, with HSBC having already disbursed 35 million euros (about $40.8 million) in interest and other fines.
Additionally, French authorities are examining whether other banks engaged in similar tax avoidance tactics. France’s economy minister indicated that the country could face a loss of up to 4.5 billion euros (around $5.3 billion) in revenue by 2025 due to such schemes. Credit Agricole is also under scrutiny as part of this investigation.
Reuters noted that in September 2025, Credit Agricole agreed to pay 88.2 million euros (approximately $103.4 million at that time) to settle a French inquiry regarding its use of dividend arbitrage to circumvent withholding taxes.
This kind of settlement in France permits companies to sidestep court proceedings by paying fines and implementing compliance measures without conceding guilt or facing criminal conviction, according to reports.
In a press release dated September 8, 2025, Credit Agricole revealed it had established internal regulations concerning the types of transactions under investigation by French prosecutors. The bank specified that the findings indicated it lacked systems or policies that would intentionally push foreign clients toward tax evasion through securities lending or trading.
