Six major banks, including Crédit Agricole, BNP Paribas, Société Générale, Natixis, HSBC, and Exane, are under investigation for allegedly using the 'CumCum' scheme to evade taxes.

The case underscores increasing regulatory and legal pressure on banks linked to tax fraud allegations in France.

The agreement between Cacib and the National Financial Prosecutor's Office (PNF) aims to resolve charges and avoid a trial.

Credit Agricole's Corporate and Investment Bank (Cacib) has agreed to pay an €88 million fine to settle allegations related to the 'CumCum' tax fraud scheme, which involves exploiting legal loopholes to evade taxes on dividends paid to foreign shareholders of French companies.

This settlement, approved by a Paris court, aims to resolve charges of tax fraud and aggravated money laundering, with the bank having conducted internal investigations, ceased the practices, and implemented weekly controls.

The investigation highlights broader issues of tax evasion through complex international financial arrangements, with ongoing legal actions targeting multiple banking institutions involved in similar schemes.

The 'CumCum' scheme was publicly exposed in 2018 by international media, revealing how shareholders transfer shares during dividend tax collection to evade taxes, with banks acting as intermediaries and earning commissions.

This scheme involves thousands of transactions annually and exploits legal loopholes, involving complex international and domestic arrangements.

Prosecutors praised Cacib's cooperation, noting the bank's internal investigation, cessation of practices, and the implementation of weekly controls, even at the risk of losing clients.

The legal case accuses Cacib of engaging in aggravated money laundering and tax fraud, with thousands of transactions annually often involving foreign fraudsters.