HSBC Settles French Tax Probe for About 300 Million Euros
- Agreement uses new French criminal settlement regulations
- HSBC admits control weaknesses at its Swiss Private Bank unit
The French headquarter offices of HSBC Holdings Plc on the Champs Elysee in Paris, France.
Photographer: Christophe Morin/Bloomberg
HSBC Holdings Plc will pay about 300 million euros ($352 million) to settle a criminal investigation by the French government into allegations it helped clients evade taxes, the second-biggest corporate charge levied by an authority in the nation.
The bank acknowledged past weaknesses in controls at the Swiss private bank unit and said it had enhanced its anti-money laundering and tax compliance procedures, according to an emailed statement. HSBC, Europe’s largest lender, was under criminal investigation regarding the private bank’s conduct in 2006 and 2007. The agreement uses new rules in France that allow for a financial settlement to satisfy criminal claims.