HSBC's settlement ends proceedings against it - French prosecutor

Marco Green
November 15, 2017

HSBC's Swiss bank was under investigation over helping clients to illegally avoid paying taxes worth 1.6 billion euros ($1.9 billion) to the French government in 2006 and 2007.

HSBC Private Bank, Swiss unit of British banking giant HSBC, has accepted to pay 300 million euros (352.83 million US dollars) to avoid going to trial over tax fraud charges, French Financial prosecutor said on Tuesday.

This allows companies under suspicion of corruption or dissimulation of tax fraud to negotiate a fine to stop a case from going to trial.

HSBC has admitted that the private Swiss bank made mistakes.

Two of its former leaders are, for their part, are criminally prosecuted.

The financial prosecutor added in a statement that the settlement was the first of its kind under a new French legal framework. But these negotiations have ended because the group and the public ministry "have not succeeded in agreeing on the amount of the sums to be paid", according to a source close to the folder. The investigation also examined whether the bank was complicit in laundering the proceeds of any tax evasion.

Other reports by Click Lancashire

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